Corporate Earnings and Economic Statistics: Highlights of the Week

This week, we can expect a series of major corporate earnings reports, inflation data, and economic statistics to take center stage. Let's take a closer look at what's in store:

Economic Data Highlight: Personal-Consumption Expenditures Price Index

On Friday, the Bureau of Labor Statistics will release the personal-consumption expenditures price index for August. This particular index, known as the core PCE, is the Federal Reserve's preferred inflation gauge. It excludes food and energy components. Economists predict a 3.9% increase compared to the same period last year, making it a significant data point to watch.

Other Data to Watch

Consumer Confidence Index by the Conference Board

Scheduled for Tuesday, the Conference Board will release its Consumer Confidence Index for September. Analysts anticipate a reading of 105, which is slightly lower than August's figure. This index provides insights into consumer sentiment, giving us a glimpse into the overall economic outlook.

Durable Goods Report by the Census Bureau

On Wednesday, the Census Bureau will release the durable goods report for August. This report tracks orders and shipments of goods intended to last for more than three years. It provides valuable insights into manufacturing activity and consumer spending trends.

Gross Domestic Product Growth Estimate by the Bureau of Economic Analysis

Thursday brings us the Bureau of Economic Analysis' third and final estimate of second-quarter gross domestic product (GDP) growth. This estimate will give us an updated picture of the economy's performance during that period.

Earnings Reports

Throughout the week, several companies will be reporting their quarterly results. Keep an eye out for updates from the following companies:

• Cintas
• Costco Wholesale
• Jefferies Financial Group
• Micron Technology
• Paychex

In addition, Generac Holdings will be hosting its 2023 investor day on Wednesday, presenting its future plans to investors.

It's an eventful week ahead with these key economic indicators and earnings reports shaping the business landscape. Stay tuned for the latest developments.

The Census Bureau Releases Durable Goods Report for August

The Census Bureau has released its durable goods report for the month of August. Economists are predicting a 0.4% decline in new orders for durable manufactured goods compared to the previous month. This follows a significant 5.2% drop in July, which marked the first decline since February and the most substantial decrease since the early days of the pandemic in April 2020.

Thursday 9/28

On this day, there will be conference calls held by Accenture, CarMax, and Nike to discuss their quarterly results. Additionally, Intuit and Philip Morris International will be conducting investor days.

Furthermore, the Bureau of Economic Analysis will release its third and final estimate of gross domestic product (GDP) growth for the second quarter. Analysts are anticipating a seasonally adjusted annual rate of 2.3% for GDP, which is slightly higher than the second estimate released by the BEA in late August.

The National Association of Realtors will also publish its Pending Home Sales Index for August, providing insights into housing activity. Economists are expecting a 0.3% month-over-month gain, following a 0.9% increase in July.

Friday 9/29

Carnival will announce its third-quarter fiscal-2023 earnings.

The Bureau of Labor Statistics will release the personal-consumption expenditures price index for August. The consensus estimate is for a 3.4% year-over-year increase in the PCE, following a 3.3% gain in July. The core PCE, which excludes volatile food and energy prices, is projected to rise by 3.9%. Though three-tenths of a percentage point lower than previously anticipated, this figure is still 1.2 percentage points below its post-pandemic peak from February 2022. Despite this decline, it remains higher than the Federal Reserve would prefer, leading to expectations that interest rates will remain higher for an extended period.

The Institute for Supply Management will release its Chicago Business Barometer for September. It is expected that the index will show a reading of 47.4, which is 1.3 points lower than in August. This marks the twelfth consecutive month that the index has fallen below the expansionary level of 50.