What to Watch in the Week Ahead and on Monday, October 10

Applied Energetics

07/10/2022 19:30

(The Day Ahead is an email and PDF publication that includes the day's major stories and
events, analyses and other features. To receive The Day Ahead, Eikon users can register at
 DAY/US . Thomson One users can register at RT/DAY/US. All times in ET/GMT)
ON MONDAY
Federal Reserve Vice Chair Lael Brainard is scheduled to speak on "Restoring Price Stability in
an Uncertain Economic Environment" before the National Association for Business Economics (NABE)
64th Annual Meeting, "Shocks and Aftershocks: Finding Balance in an Unstable World." (1335/1735)
Separately, Federal Reserve Bank of Chicago President Charles Evans is expected to speak in
person on current economic conditions or monetary policy before the National Association for
Business Economics (NABE) 64th Annual Meeting, "Shocks and Aftershocks: Finding Balance in an
Unstable World." (0900/1300)
REST OF THE WEEK
On the U.S. economic calendar, on Wednesday, the Labor Department is expected to report the
producer price index for final demand rose 0.2% in September, following a decline of 0.1% in
August. In the 12 months through September, it increased 8.3% after advancing 8.7% in August.
Excluding the volatile food, energy and trade services components, producer prices rose 0.3% in
September, after rising 0.4% in August. On Thursday, the Labor Department is expected to report
consumer price index (CPI) likely rose 0.2% in September, after rising 0.1% in August. In the 12
months through September, the CPI increased 8.1% following a 8.3% rise in August. On the same
day the Labor Department is also expected to report initial claims for state unemployment
benefits rose by 6,000 to a seasonally adjusted 225,000 for the week ended Oct. 8. The continued
jobless claims data is also due to be released on the same day. Retail sales data, which is due
to be released on Friday, is expected to rise 0.2% for September, after rising 0.3% in August.
Business inventories are expected to have increased 0.9% in August, after rising 0.6% in July.
The Labor Department also is expected to report both import and export prices for September on
Friday.
The Federal Open Market Committee on Wednesday issues minutes from its meeting held in
September.
JPMorgan Chase & Co is set to report its third-quarter revenue on Friday. Analysts expect a 24%
drop in the firm's net profit in the quarter from a year earlier, hit by a downturn in
investment banking fees as deals collapsed. On the same day, Morgan Stanley is likely to report
their third-quarter earnings. The quarterly net profit is expected at $2.585 billion versus $3.7
billion a year earlier.
Wells Fargo & Co is expected to report a drop in third-quarter profit on Friday. Analysts expect
the lender to set aside reserves to cover potential loan losses as high interest rates and
red-hot inflation hurt consumers' financial health. Investors will also be watching out
for mortgage demand at the bank, after interest rates on the most popular U.S. home loan surged
to the highest level in over a decade.
PepsiCo Inc is expected post a rise in third-quarter revenue on Wednesday, boosted by strong
demand for its sodas and snacks despite decades-high inflation. Investors will look out for
comments on supply chain disruptions, higher costs, price hikes and shift in consumer demand due
to rising inflation.
Federal Reserve Board Governor Michelle Bowman is expected to speak on "Forward Guidance as a
Monetary Policy Tool: Considerations for the Current Economic Environment" before the Money
Marketeers of New York University on Wednesday. On the same day, Federal Reserve Vice Chair for
Supervision Michael Barr is expected to speak on "New Technologies, the Fed, and Inclusion"
before the 2022 D.C. Fintech Week event. On Friday, Federal Reserve Board Governor Lisa Cook is
expected to participate in fireside chat on the U.S. economy before the National Bankers
Association 95th Anniversary Conference: "Honoring the Past, Shaping the Future: MDIs and the
Road to Wealth Creation. Separately, Federal Reserve Bank of Kansas City President Esther George
is scheduled to speak on the economic outlook before virtual S&P Global Finance Chat Series
hosted by S&P Global Ratings on the same day. On Thursday, Federal Reserve Bank of Cleveland
President Loretta Mester is scheduled to speak on monetary policy and the economic outlook
before the Council for Economic Education "Economists on the Economy" event. Separately, Mester
is scheduled to speak on monetary policy and the economic outlook before a Signature Luncheon
hosted by the Economic Club of New York on Tuesday. On the same day, Federal Reserve Bank of
Philadelphia President Patrick Harker is expected to speak on "How Anchor Institutions Drive
Impact for Their Regions" before hybrid "Young, Smart and Local" event at the University of
North Carolina at Greensboro. Additionally on Wednesday, Federal Reserve Bank of Minneapolis
President Neel Kashkari is likely to participate in a Town Hall before the 2022 Northwoods
Economic Development Summit.
On Thursday, Delta Air Lines Inc is expected to post its highest quarterly profit since the
start of the pandemic. The focus, however, will be on the carrier's ability to mitigate
persistent inflationary pressure and protect profit after the end of summer travel season.
UnitedHealth Group Inc is expected to report third-quarter earnings on Friday. The industry
bellwether's medical costs will be in focus, as investors seek to gauge if COVID-19 costs have
stabilized for health insurers after several quarters of volatility. Separately, Walgreens Boots
Alliance Inc will release its fourth-quarter earnings on Thursday. Investor focus is expected to
be on the forecast for the next fiscal year and management's commentary on their investment in
healthcare.
Domino's Pizza Inc is expected to post a rise in third-quarter revenue on Thursday, helped by
steady demand for its pizza, chicken wings and value offerings despite price hikes. Investors
will look out for updates from the company on its inflation relief deals, driver staffing issue,
impact from stronger dollar, supply chain issues and restricted consumer spending amid
inflation.
Meta Platforms Inc will host its annual Connect event on Tuesday to showcase its augmented and
virtual reality (AR/VR) offerings, including the possible release of its much touted headset
codenamed Project Cambria.
In a hybrid event on Tuesday, Alphabet Inc's Google Cloud executives speak to the unit's new
capabilities.
On Tuesday, Intel Corp will ask the 9th Circuit Court of Appeals to revive its antitrust case
against Softbank's Fortress Investment Group LLC, which it accused of stockpiling thousands of
patents to extort tech companies with infringement claims. Intel accused a Northern California
court of "refusing to draw the obvious conclusions from Intel's detailed allegations and
demanding an unreasonably high degree of specificity and evidentiary completeness" when it
dismissed the complaint. On the same day, Internet service provider Grande Communications Inc
will face a jury trial in a lawsuit brought by a group of major record labels which say the ISP
enables massive piracy on its platform. The labels won $1 billion from ISP Cox Communications on
similar claims in 2019. The trial is scheduled to last through Oct. 28.
A jury is scheduled to hear closing arguments in Nikola Corp founder Trevor Milton's trial on
charges of lying to investors about the electric vehicle company's technology on Tuesday.
Mexico's industrial output data is due for release on Wednesday. On the same day, Chile's
central bank is expected to release the country's interest rate for October.
 (Compiled by Kumar Satyam; Editing by Shailesh Kuber)
 ((Kumar.Satyam@thomsonreuters.com))