The Week Ahead on Wall Street

Economic News

The National Association of Home Builders Index for October is released today, which tracks the health of the housing market. Confidence among homebuilders increased in September, albeit slightly, as prices for lumber and other building materials started to fall. The Index hit 76 in September. Investors are hoping confidence remains up in October.

Tomorrow, housing starts for September are released, which tracks the number of new homes beginning construction in a given month. In August homebuilders began construction on 1.65 million new homes—up 3.9% month-over-month and 17.4% annually. The increase came even in the wake of labor shortages and higher materials costs.

On Wednesday, the Beige book is released by the Federal Reserve. This report is published eight times per year, and compiles information from each Federal Reserve branch about current economic conditions. The July Beige book highlighted broad job gains and rising costs, leading businesses to question whether inflation will fade in the near term.

On Thursday, initial and existing unemployment claims for the prior week are released. The unemployment picture is improving with more people returning to work. Last week initial unemployment claims hit a pandemic low of 293,000, which was the first time the number dipped below 300,000 since the pandemic started.

On Friday, Markit Manufacturing and Services PMI numbers are released. In September, economic activity grew at the slowest rate seen so far in 2021 due to supply-chain issues and slowing demand. Investors will be paying close attention to see if these trends continue.

Earnings Reports

Today, Albertsons (ACI) reports quarterly earnings. The grocery store chain has been growing its online presence ever since the onset of the pandemic. Most recently it launched livestream video shopping experiences as a way to engage with more customers. The grocery store chain is also testing delivery robots and is focusing on its mobile app. It will be interesting to hear what the company has to say about these initiatives when it reports earnings.

Tomorrow, be on the lookout for earnings from Netflix (NFLX). The world’s biggest streaming service is expected to have a strong showing in the September quarter, with revenue and subscriber numbers growing. Wall Street is bullish about Netflix’s upcoming slate of shows and movies. Investors also have high hopes for Netflix’s mobile gaming initiatives.

On Wednesday, be on the lookout for earnings from Las Vegas Sands (LVS). The casino operator’s stock has been under pressure in recent weeks due to concerns that the Chinese government will require concessions from casino operators in Macau. Investors will be paying close attention to what Las Vegas Sands has to say about this.

On Thursday, Southwest Airlines (LUV) reports quarterly earnings. The airline operator recently canceled two thousand flights due to bad weather and a shortage of workers. The cancellations have eased but the airline will still have a lot of explaining to do when it reports quarterly earnings.

On Friday, American Express (AXP) reports quarterly results. The payments company is expected to provide insight into how consumer spending is holding up. American Express saw growth in customers and credit card utilization in the second quarter, with spending particularly high in June.

The Week Ahead at SoFi

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