Week Ahead on Wall Street

Economic Data

Today, the New York Fed will release the Empire State Manufacturing Index for October. This is a snapshot view of the region’s manufacturing activity. The September survey showed business activity holding steady across the state, with new orders and shipments up from the previous month.

Tomorrow, watch for the NAHB/Wells Fargo Housing Market Index for October. This tracks confidence among builders of single-family homes. In September the index fell for the ninth-straight month. Also keep an eye out for September’s capacity utilization rate and industrial production index.

On Wednesday, September’s housing starts and building permits are due from the U.S. Census Bureau. These are key indicators of demand within the housing market. In August, building permits declined month-over-month to hit the lowest reading in two years. Meanwhile, housing starts increased unexpectedly in August, buoyed by an increase in multi-family projects. That same day, the Fed is set to release its Summary of Commentary on Current Economic Conditions, also known as the Beige Book.

Expect Thursday to be a busy day with last week’s jobless claims and October’s Philadelphia Fed manufacturing index due, as well as both existing home sales, and leading economic indicators for September. It’s worth noting the Conference Board’s Leading Economic Index declined 0.3% in August. This marked the sixth consecutive month of declines and arguably signals the U.S. is entering a recession. An increase for October could be a sign of relief. A decline would mean that the U.S. is slipping further into recession territory.

There is no major economic data scheduled for release on Friday.

Earnings

Today, Bank of America (BAC) kicks off an earnings week that’s full of financial institutions reporting their latest results. This includes Charles Schwab (SCHW) today, Goldman Sachs (GS) tomorrow, and Ally Financial (ALLY) on Wednesday. Bank earnings reports are often a good barometer of the economy as a whole since they offer insight into things like business/consumer debt levels, mortgages, business loans, and more.

Tomorrow, Netflix (NFLX) is set to report its earnings which should be interesting given that the movie streamer is currently at a crossroads. To make up for a declining subscriber base, Netflix management is launching an ad-supported version beginning next month. Given that this essentially turns streaming back into a product resembling cable TV, the move has been negatively received by users so far.

On Wednesday, Tesla (TSLA) and its controversial CEO Elon Musk will offer insight into the EV sector. Given Elon Musk’s flair for bold, visionary plans this will likely be another exciting report to listen to. He may speak on Tesla’s plan for its AI-powered humanoid robot. Additionally, Procter & Gamble (PG), one of the world’s largest consumer-packaged goods companies, will explain how inflation has impacted its bottom line.

On Thursday, watch for AT&T (T) to release its third-quarter earnings. This dividend stock is typically one of the more reliable companies in the U.S., but its sales have dipped so far in 2022. If AT&T decides to slash its dividend payment then it could be a bad sign for the overall economy.

Rounding out the week, American Express (AXP) will report on Friday. Given that it’s one of the last financial companies to report this week, it will be interesting to see how AmEx’s data stacks up against Bank of America, Goldman Sachs, and others.

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