Stocks End Higher Amid Middle East Conflict
Stocks ended higher on Monday, erasing earlier losses as tensions escalated in the Middle East. Despite the ongoing conflict, investors remain optimistic about the market’s performance.
Inflation Reports Could Influence Fed’s Decision
This week, two key inflation reports are set to be released, which could impact the Federal Reserve’s decision on interest rates. The Fed has been closely monitoring job and inflation data to assess the effectiveness of its policy actions. The central bank aims to cool inflation and bring it back to its 2% annual target.
Producer prices and consumer prices for September are expected to be released later this week, along with the consumer sentiment report from the University of Michigan.
The futures markets indicate a low probability of the Fed raising rates in its upcoming meeting in November. Most traders believe that the Fed will maintain its pause. The minutes from the September Fed meeting, scheduled to be released on Wednesday, might provide insights into the policymakers’ thoughts on rates for the rest of the year.
Earnings from major banks, including JPMorgan Chase, will also be closely watched as they can provide valuable insights into the state of the economy. Executives are expected to provide updates on consumer credit and spending trends.
Three Key Factors Influencing Markets
1. PepsiCo Earnings: Beverage and snack maker PepsiCo Inc is expected to report earnings per share of $2.15 on revenue of $23.4 billion.
2. Small Business Outlook: The small business reading for September is scheduled to be released at 6:00 ET (10:00 GMT). Analysts anticipate a marginal increase from the previous reading of 91.3 to 91.4.
3. Fed Speakers: Several Fed officials, including Atlanta Fed President Raphael Bostic, Governor Christopher Waller, Minneapolis Fed President Neel Kashkari, and San Francisco Fed President Mary Daly, are scheduled to speak on Tuesday.
Overall, the market remains cautiously optimistic as investors analyze various factors that could potentially impact market performance.
