By Salma El-Sakka
The coming week will feature a slate of major employment reports and corporate earnings releases that will provide fresh insight into the health of the US economy as inflation pressures persist and midterm elections approach.
Employment Reports Signal Labor Market Stress
Several key labor market indicators will be released. On Tuesday, the Labor Department publishes its Job Openings and Labor Turnover Survey (JOLTS) for September, covering sectors such as healthcare, retail, and manufacturing. Economists expect a slight rise in job openings. Weekly unemployment claims, a proxy for layoffs, follow on Thursday. The closely watched monthly employment report for October arrives Friday, with economists anticipating little change from September's disappointing hiring figures. Revisions have also reduced job counts from prior months.
Manufacturing and Services Expansion Continues
The Institute for Supply Management will release its manufacturing report on Monday and its services sector report on Wednesday. Both are expected to show continued slight growth. Business commentary in the reports highlights ongoing concerns about higher costs driven by an erratic US trade conflict and surging oil prices from the ongoing US war with Iran, which has disrupted shipments through the Strait of Hormuz since February.
Corporate Earnings Offer View on Inflation and AI
Earnings from a range of companies will add detail to the economic picture. Nearly half of S&P 500 firms have reported, with Wall Street expecting overall profits to rise 30%. Clorox reports Monday. Advanced Micro Devices and Super Micro Computer report Tuesday, alongside online travel firm Booking Holdings. Expedia follows Wednesday. Tapestry and Ralph Lauren report Thursday.
Federal Reserve Policy Complicated by Mixed Signals
The weaker jobs market adds complexity for the Federal Reserve, which is expected to raise its benchmark interest rate again before year-end to combat inflation while also pursuing maximum employment. Higher rates that slow growth tend to hurt the labor market. The reports arrive as Americans head to the polls for the November 3 midterm elections that could reshape Congress.
