Here are some insights on where the financial markets are going.
We are in the middle of the earnings reporting season. This means we will get to see where the market is going in terms of investment strategies looking towards 2022. The question is: How far in the transitory period are we in regarding the pandemic and the Delta variance.
One thing I know for sure is the banking industry is strong and looking good.
Why? (I’m so glad you asked).
Because while we were in lock down during the Covid-19 period we did not spend, spend, spend. We saved, we saved and we saved some more. Thus, the banks and financial institutions are sitting on a ton of liquidity and flush with cash. Check out their earning reports next week to confirm this theory.
One of the things that will impact earnings on consumer spending is Supply Chain disruptions. It will make or break our holiday shopping season. Look around. You see Christmas products everywhere.
Really! We have not had Halloween or Thanksgiving yet Christmas is in the air – yahoo!!!
The earning reports coming out this week (see the dates below) are what happened this summer. The next earning reporting season will tell us what happens this winter. Those reports will be in the middle of January and early February 2022.
Take a snapshot of the current earnings report to see what happens between now and Feb. 2022.
Monday October 18:
State Street (STT) reports earnings. PAY ATTENTION TO THIS!
US Industrial and Manufacturing Production (September) THIS WILL BE BIG!
U.S. Capacity Utilization (September)
NAHB Housing Market Index (October) – Zillow and Opendoor technologies are reporting a crazy housing market.
Tuesday October 19:
Johnson & Johnson (JNJ), Proctor & Gamble (PG), Netflix (NFLX), Philip Morris (PM), BNY Mellon (BK), and United Airlines (UAL) report earnings.
U.S. Building Permits and Housing Starts (September) – PAY ATTENTION TO THIS!
China Industrial Profits (September)
Wednesday October 20:
IBM (IBM), Tesla (TSLA), Verizon (VZ), ASML (ASML), Biogen (BIIB), Discover (DFS), Nasdaq (NDAQ), Northern Trust (NTRS), and Citizens Financial Group (CFG), report earnings.
MBA Mortgage Applications – PAY ATTENTION TO THIS TOO!
EA Final Inflation Rate (September) IS INFLATION REAL OR TRANSITORY?
Thursday October 21:
Intel (INTC), AT&T (T), Snap (SNAP), Freeport-McMoRan (FCX), Danaher (DHR), and Blackstone (BX) report earnings.
U.S. Existing Home Sales (September) – PAY ATTENTION TO THIS!
CB Leading Index (September)
EA Flash Consumer Confidence (October) – WHAT ARE WE (THE CONSUMER) THINKING?
Friday October 22:
Honeywell (HON) and American Express (AXP) report earnings.
U.S. Market Flash Services and Manufacturing PMI (October)
EA Market Flash Services and Manufacturing PMI (October)
Financial Firms Report
American financial firms will weigh in next week starting with:
State Street on Monday
BNY Mellon on Tuesday
Northern Trust on Wednesday
Discover on Wednesday
Citizens and others on Wednesday.
So far the financial heavyweights have performed well.
Bank of America
These folks are beating Wall Street analyst estimates.That trend is likely to continue next week.
Hold on to your seats. The ride to the end of the year is going to be fun (I think).
I must thank Investopedia for their information on what to expect this week. These people are really good.
Until the next time.
R. LaMont W.