JP Morgan, Delta Earnings, Consumer Prices: 3 Things to Watch

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Investing.com — Stocks wavered on Tuesday as worries about rising inflation and the third quarter earnings season put a damper on the mood.

The S&P 500 was flat to slightly down with half-hour of trading left in the day. Electric vehicle maker Tesla Inc (NASDAQ:TSLA) got a bump after saying it sold more China-made vehicles last month than it has since it opened its factory in Shanghai two years ago.

Investors are bracing for comments by CEOs this earnings season, expecting to hear about the effects of rising energy costs, supply chain bottlenecks and scarce materials. JPMorgan Chase & Co (NYSE:JPM) kicks off the big bank earnings on Wednesday.

Reuters reported that analysts expect a 29.6% year-over-year increase in profit for S&P 500 companies in the third quarter, according to IBES data from Refinitiv as of Friday.

There are a number of economic reports this week, as well, including the minutes of the Federal Reserve’s September policy meeting. Investors will be scouring it for hints at the central bank’s thinking on the taper timeline.

This week also brings reports on consumer prices and retail sales. 

Here are three things that could affect markets tomorrow:

1. JP Morgan earnings

JPMorgan is expected to report profit per share of $3 on revenue of $29.86 billion for the third quarter. Analysts will be listening to CEO Jamie Dimon’s thoughts on the state of the economy, and the outlook for consumer and business borrowing.

2. Delta earnings

Delta Air Lines Inc (NYSE:DAL) is seen posting a third-quarter profit of 16 cents and revenue of $8.41 billion, according to analysts tracked by Investing.com. The travel industry has been struggling to recover from the pandemic, so analysts will be listening for what the airline says about bookings going into the holiday season and business travel trends.

3. Consumer prices

Core CPI is seen rising by 4% year-on-year in September, unchanged from August’s 4% increment. On a month-on-month basis, it is expected to have risen at a faster clip of 0.2% compared to August’s 0.1%. The data are released at 8:30 AM ET (1230 GMT).

September consumer prices are expected to have risen by 5.3% year-on-year, the same pace as August’s. On a month-on-month basis also, CPI is seen having risen by the same rate as August’s 0.3%.