#WallStreet #ConsumerData #Inflation #FederalReserve #BondYields #RetailSales #EarningsSeason #USChinaSummit
Wall Street is gearing up for a week of important data releases and geopolitical risks as investors hope to extend the November rally. One of the main focuses for investors is the key inflation release from the Commerce Department on Tuesday. Economists are expecting a slowdown in headline inflation to 3.3% last month, down from 3.7% in September. However, core consumer prices are likely to remain sticky, holding at 4.1% on a yearly basis and 0.3% on a monthly basis. The Federal Reserve’s hawkish rate stance is expected to stay intact, which may lead to higher Treasury bond yields.
On Wednesday, the Commerce Department will follow up with the release of October retail sales figures. It is anticipated that the headline figure will show a 0.1% decline from September, mainly due to lower gas prices. Retail giants such as Home Depot, Target, and Walmart will also report their October quarter earnings this week, providing insight into holiday season outlooks. Walmart is expected to see a slight increase in earnings and revenues compared to last year. Overall, the third-quarter earnings season has been stronger than expected, with collective profits forecasted to rise 6.3% from last year. However, earnings growth is anticipated to slow in the final months of the year. In addition to data releases, markets will also be keeping a close eye on the meeting between President Biden and President Xi Jinping at the Asia-Pacific Economic Cooperation summit on Wednesday. The meeting will address various issues, including trade, regional security, and artificial intelligence risks.
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