CPI inflation data; Tesla, Netflix, Intel earnings

Trade is the talk of the town this week.

Investors are awaiting trade policy updates ahead of the scheduled meeting between President Donald Trump and Chinese President Xi Jinping, in addition to the expected inflation reading, after a volatile week of trading marked by concerns about bad loans at regional banks.

The September CPI release, which was delayed due to the government shutdown, will likely be the last major piece of data the Fed will receive before next week’s interest rate decision. It is possible that other government reports will remain delayed until the budget dispute is resolved in Washington.

Magnificent 7 member Tesla is set to report earnings on Wednesday, when CEO Elon Musk could provide more details on the electric carmaker’s progress in robotics and artificial intelligence, after a sharp rise in recent months. Intel’s report will be in focus after a wave of investments in the struggling chipmaker boosted its shares.

Read down to the bottom for our calendar of key events – and something else.

Electric vehicles and artificial intelligence are in the spotlight with outstanding reports from Tesla, Intel and the automakers

Tesla’s earnings release scheduled for Wednesday comes after stronger-than-expected deliveries as buyers rushed to take advantage of expiring tax credits for electric vehicles. The Big Three automakers, Ford and General Motors, which are scheduled to announce this week, have likely benefited from the same tailwinds, although both automakers have scaled back their electric vehicle ambitions.

Tesla CEO Elon Musk could provide more details on developments in the company’s high-tech offerings beyond electric vehicles, including expanding robotaxi services, Optimus robots, and self-driving technology. Intel’s report, due for release on Thursday, comes as shares of the US chipmaker rose after a series of deals including one that saw the US government take a stake in and partner with artificial intelligence leader Nvidia.

Netflix’s report comes after the streaming company recently raised its prices and boosted its revenue forecast. Updates from Coca-Cola and Procter & Gamble could provide some insight into consumer spending, while Friday’s earnings from HCA Healthcare could offer a look at the hospital sector. Gold miner Newmont’s report on Thursday comes as the precious metal hits a series of new all-time highs.

September inflation data could influence the Fed’s decision on interest rates

With not many economic reports due to the federal shutdown, Friday’s CPI inflation report may be the last major piece of economic data the Fed gets before it releases a decision on interest rates next week. Forecasters expect the report to show prices continuing to rise, but at a slower pace than in August.

The data could influence whether the Fed continues with its plans to continue lowering interest rates. Fed officials said their focus is on the weak labor market, which may favor lower interest rates. But higher-than-expected inflation may prompt them to reconsider.

While the release of new home sales data will likely be delayed, market watchers will still see Thursday’s National Association of Realtors existing home sales data for September, as economists look for signs of a weak housing market rebound. The week will also bring new numbers on consumer sentiment and October PMI surveys.

Quick links: Summary of last week’s trading | Latest market news

This week’s calendar

Monday 20 October

• Leading US Economic Indicators (September)

Tuesday 21 October

• Fed Officials Speak: Fed Governor Christopher Waller will make opening and closing remarks at the Payments Conference
• Key Earnings: Netflix (NFLX), GE Aerospace (GE), Coca-Cola (KO), Philip Morris (PM), RTX Corp (RTX), Texas Instruments (TXN), Capital One (COF), Lockheed Martin (LMT), Inc. 3M (MMM), General Motors (GM).

Wednesday 22 October

• Key Earnings: Tesla (TSLA), SAP (SAP), IBM (IBM), Thermo Fisher Scientific (TMO), AT&T (T), GE Vernova (GEV), Lam Research (LRCX)

Thursday 23 October

• Existing Home Sales (September)
• Fed officials speak: Vice Chair of Supervision Michelle Bowman to testify at Senate banking regulations hearing
• Data Delayed by the Shutdown: Initial Jobless Claims (Week Ending October 18)
• Key Earnings: T-Mobile US (TMUS), Intel (INTC), Union Pacific (UNP), Honeywell (HON), Blackstone (BX), Newmont Corp (NEM), Ford (F)

Friday 24 October

• Consumer Price Index (CPI) (September)
• Other data to watch: US S&P Purchasing Managers’ Index (October), Consumer Confidence – Final (October)
• Data delayed by lockdown: New Home Sales (September)
• Key Earnings: Procter & Gamble (PG), Sanofi (SNY), HCA Healthcare (HCA)

Another thing

Banking fees are rising at a major bank, with new waiver rules for current accounts coming into effect this month. Investopedia’s Sabrina Karl has more information on options customers have to avoid paying more.