Bank earnings, CPI headline busy markets week as S&P 500 hovers near records
SPY•Major bank earnings and inflation data are due next week as the S&P 500 sits near record levels. September CPI is reportedly expected to rise 3.6% year over year, while third-quarter S&P 500 earnings are expected to increase more than 30%.
1. Banks report results
JPMorgan, Goldman Sachs, Citigroup and Wells Fargo are scheduled to report Tuesday, followed Wednesday by Morgan Stanley and Bank of America. The results will offer views on consumer spending and capital-markets activity; the S&P 500 banks index fell 9% in the past month.
2. Inflation and rates
September CPI is expected to show a 3.6% annual increase, with core CPI estimated to rise 2.5%. Producer prices and retail sales are also due next week. Investors have reduced expectations for another rate increase at the Federal Reserve’s October 27-28 meeting, while the 10-year Treasury yield was around 5.23% after recently reaching its highest level in 24 years.
3. Market and earnings context
The S&P 500 reached an all-time closing high on Tuesday, and its year-to-date gain exceeded 13%. Third-quarter S&P 500 earnings are expected to have risen more than 30%, following a strong first half.
