There will be an eye on the Federal Reserve this week, as the central bank’s policy committee meets to consider further increases in interest rates. A handful of major companies will report earnings this week, including
on Monday and
on Wednesday. Thursday,
The main event of the week is the two-day meeting of the Federal Open Market Committee, which ends on Wednesday. Futures pricing suggests the biggest odds are for a third straight rate hike of 0.75 percentage points.
The Bank of Japan also announces a monetary policy decision on Thursday. No change in interest rates is expected there.
Economic data this week will show several indicators of the health of the US housing market. The National Association of Home Builders releases its Housing Market Index for September on Monday, the Census Bureau will report housing starts for August on Tuesday, and the National Association of Realtors reports existing home sales for August on Wednesday.
Other data will include the Conference Board’s Leading Economic Index for August on Thursday and the S&P Global Services Manufacturing and Purchasing Managers Indices for September on Friday.
AutoZone reports fiscal-2022 fourth quarter results.
The National Association Home Builders releases its Housing Market Index for September. Economists predicted a reading of 48.5, about even with the August data. The index has fallen every month this year and in August it breached the key break-even 50 measure for the first time since May 2020.
Bureau of the Census new residential construction statistics report for August. A seasonally adjusted annual rate of 1.45 million privately owned housing starts is expected, in line with the July figure.
National Association of Realtors existing home sales report for August. The consensus estimate is a seasonally adjusted annual rate of 4.7 million existing homes sold, about 100,000 fewer than in July.
General Mills and Lennar release earnings.
host investor days.
The Federal Open Market The Committee announces its decision on monetary policy. Just two weeks ago, Wall Street was debating whether the FOMC would raise the federal funds rate by 50 or 75 basis points. After another strong jobs report and a warmer-than-expected print for the August consumer price index, a three-quarter percentage point interest rate hike looks certain. That would bring the fed funds rate to 3.0%-3.25%. Traders are even pricing in a 25% chance that the central bank will raise its key short-term rate by a full percentage point, which would be the biggest move in nearly four decades.
Accenture, Costco Wholesale, Darden Restaurants, FactSet Research Systems, and
hold conference calls to discuss quarterly results.
hold investors days.
Bank of Japan to determine monetary-policy. The central bank is expected to maintain its ultra-low interest rate policy and keep its target rate unchanged at negative 0.1%, as it has been since early 2016. The dovish
in contrast to the US Federal Reserve, the yen fell to its lowest level against the US dollar since 1998.
Conference Board releases its Main Economic Index for August. The consensus call is for a 0.1% month-on-month increase, after a 0.4% decline in July. The index has fallen for five consecutive months, indicating that the risk of a recession is rising in the short term.
S&P Global issues for its Manufacturing Managers and Purchasing Services indexes for September. Economists predicted a reading of 51 for Manufacturing
and 45.3 for the Services PMI. This compared to 51.5 and 43.7, respectively, in August.
Write to Nicholas Jasinski at firstname.lastname@example.org