The Week Ahead: FOMC, Jobs Report, Earnings
By John Thorpe, Senior Broker
The big question in the October 30 week is whether the FOMC will hold the fed funds target rate range at 5.25-5.50 percent for the second meeting in a row This will be released Wednesday @ 1PM CDT .
The present crop of economic data and anecdotal evidence is expected to result in no change in rates after the October 31-November 1 meeting. Fact: US economy grew 4.9 percent in the third quarter. If the labor market reflects slower hiring activity, it also shows few signs of an acceleration in layoffs. Inflation was less improved in the September reports, but at least some of that is due to rising gasoline costs which are now moderating quickly.
Tightening in financial markets is doing some of the FOMC’s work in making credit conditions more restrictive. Last week Fed Chair Jerome Powell noted that he thinks there are “meaningful” impacts from past rate hikes still to b remain in the spotlight when it unveils its fiscal fourth-quarter results after Thursday’s close. Analysts, on average, expect Apple to report earnings up $1.31 per share (+1.6% YoY) on revenue of $84.2 billion (-6.6% YoY). born out in future data.
This sets the stage to extend the pause in the current rate hike cycle. However, Fed policymakers will remain hawkish on the inflation outlook and prepared to raise rates further if the data do not indicate further progress in disinflation. This week Non-Farm Payrolls will be released at 7:30 am CDT Friday and presumably the FED policymakers won’t know what prior impacts of rate increases will have had in hiring the past month.
As for Earnings this week AAPL will remain in the spotlight when it unveils its fiscal fourth-quarter results after Thursday’s close. Analysts, on average, expect Apple to report earnings up $1.31 per share (+1.6% YoY) on revenue of $84.2 billion (-6.6% YoY).
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