The Week Ahead on Wall Street

Economic Data

Today the September NAHB Home Builders’ Index is due. Last month, builder confidence tumbled for the eighth straight month. The negative sentiment is mostly related to ongoing supply chain issues, high home prices, and elevated interest rates.

Tomorrow, August Building Permits and Housing Starts are due, which will shine additional light on the real estate sector. Permits for homebuilding slipped 1.3% in July, again largely due to higher mortgage rates and increased costs of materials.

August Existing Home Sales are due Wednesday, but investors will mostly be focusing on a statement from the Federal Reserve expected at 2 pm ET, and then a news conference from Fed Chair Jerome Powell shortly after. Wall Street wants to know how much the central bank is planning to hike rates, and for how much longer they plan to do so to tame inflation.

Initial Jobless Claims and Continuing Jobless Claims are due on Thursday. Last week, initial jobless claims fell for the fifth-straight week, highlighting the relatively robust labor market.

Finally, on Friday, flash PMI readings for Manufacturing and services are due for September. Again, the story here is really about inflation. Investors want to know how much price increases are impacting businesses in both the manufacturing and service sectors.

Earnings

AutoZone (AZO) kicks off the week with its fourth quarter earnings call today. At the end of August, shares of Advance Auto Parts (AAP) tumbled after higher inflation and fuel costs caused the company to miss on both the top and bottom lines. Investors want to know if AutoZone is facing the same headwinds.

Stitch Fix (SFIX) is scheduled to report its latest earnings tomorrow. There used to be a lot of focus on clothing subscription businesses. Trunk Club, for example, was acquired by Nordstrom but has since been shut down. Wall Street wants to know how Stitch Fix is planning to become profitable and what its outlook is for the future.

Both KB Home (KBH) and Lennar (LEN) report earnings on Wednesday and Thursday, respectively. These calls, along with the real estate focused economic reports, will provide a well-rounded update for the real estate market. Operators and investors in the space are contending with rising rates and increased costs. Heading into colder months, which is when construction often slows, analysts will be eager to hear thoughts about the space over the next six to 12 months.

Costco (COST) reports on Thursday as well. Food costs continue to climb, which is putting pressure on consumers. Investors want to understand how that is helping or hurting the company.

The Week Ahead at SoFi

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