Equities ended last week mixed, with the tech-heavy Nasdaq Composite index rising 0.5%, while the S&P 500 fell 0.3%. Treasury yields got a temporary reprieve late in the week from their recent relentless rise, as a better-than-feared inflation report and worse-than-expected jobs report had Wall Street reassessing the path of the federal-funds rate.
This week is light on obvious market catalysts as there is no tier-one economic data release and the earnings calendar is light. But it will be a brief respite ahead of the third-quarter earnings season, which will unofficially start when the big banks report results on Oct. 13.
Three S&P 500 companies will release earnings this week: Constellation Brands on Tuesday, PepsiCo on Thursday, and Delta Air Lines on Friday.
Monday 10/5
The Institute for Supply Management releases its Services Purchasing Managers' Index for September. Consensus estimate is for a 55 reading, slightly lower than in August.
Tuesday 10/6
Constellation Brands, Lamb Weston Holdings, and RPM International report quarterly results.
Wednesday 10/7
Applied Digital and Levi Strauss release earnings.
The Federal Open Market Committee releases the minutes from its mid-September monetary policy meeting. At that meeting the FOMC unanimously voted to raise the federal funds rate by a quarter of a percentage point to 3.75% to 4%. With the release of last week's better-than-expected inflation report and weaker-than-expected jobs report, traders are pricing in a 20% chance that the central bank will raise interest rates at its late-October meeting, down from a 65% chance last week.
Thursday 10/8
PepsiCo announces quarterly results.
Friday 10/9
Delta Air Lines reports earnings.
The University of Michigan releases its Consumer Sentiment index for October. Economists forecast a 47.7 reading, roughly half a point less than the September data. Consumer sentiment remains in the doldrums, with the Conference Board's measure hitting a 12-year low last week. One reason could be that the year-over-year change in average hourly earnings has lagged behind inflation for five consecutive months.