Week Ahead on Wall Street

To Hike or Not to Hike

It’s Fed week and investors are curious to hear the central bank’s Chairman Jerome Powell address the latest round of inflation data, which came in a little hotter than expected.

August consumer price inflation hit 3.7% year-over-year, marking the second straight month of increases. Even so, inflation has come down markedly from last year’s peak, and most analysts anticipate the Fed will maintain current interest rates during its upcoming meeting. Still the rate of inflation remains well-above the central bank’s target rate around 2%, and the market is currently factoring in a higher chance of a rate increase in November.

Aside from the interest rate decision, the Fed will also release updated economic projections on Wednesday, which could sway markets.

Otherwise, investors will have a slew of housing market data to digest this week, starting with the housing market index for September. This gauge for current single-family home sales, compiled by the National Association of Home Builders and Wells Fargo (WFC), dropped in August.

On Tuesday, building permits and housing starts for August will be released.

On Thursday, the real estate reports will continue with existing home sales for August. In July, this metric dropped 2.2% month-over-month. Data on jobless claims will come in as well.

On Friday, FOMC member and Fed Governor Lisa D. Cook will give a keynote address at the National Bureau of Economic Research Economics of Artificial Intelligence Conference.

FedEx’s Pilot Woes

FedEx (FDX) is set to report earnings Wednesday. Tensions with the company’s pilots have been rising. A decline in shipping volume has left the company with hundreds of excess pilots and Captain Chris Normam, chair of the FedEx Express Master Executive Council, expressed concerns about the relationship between the cargo carrier and its pilots.

With FedEx announcing layoffs at the tail-end of last week, these tensions may only continue to mount. Tune in on Wednesday to learn more.

Earnings

In other earnings, Stitch Fix (SFIX) will hand in its earnings report today, possibly addressing the closure of its UK business.

Tuesday, auto parts seller Autozone (AZO) will announce its latest quarterly earnings. The prior quarter was better than expected, with earnings per share growing nearly 18% year-over-year.

On Wednesday, General Mills (GIS) will give investors an update on its massive consumer goods portfolio. In preparation for Spooky Season, the 95-year-old snack conglomerate announced a new friend for its popular Franken Berry, Boo Berry, and Count Chocula brands: Carmella Creeper, a zombie DJ with her own TikTok account.

On Thursday, Olive Garden-owner Darden Restaurants (DRI) will release its latest report card. The restaurant conglomerate may provide additional details on its recent Ruth Chris’s Steak House acquisition.

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