Investing.com -- U.S. inflation data could offer more clarity on the future path of interest rates after Friday’s strong jobs report while Wednesday’s minutes of the Federal Reserve’s latest meeting will also be closely scrutinized. Meanwhile, third quarter earnings season gets underway and energy prices remain in focus. Here’s what you need to know to start your week.
Inflation data
The U.S. is to release what will be keenly anticipated consumer and producer price index data for September this week as investors continue to weigh the Fed’s ‘higher for longer’ rates mantra.
August’s CPI report showed the fastest increase in 14 months as the cost of gasoline surged, although core inflation, which excludes food and fuel costs rose at the slowest pace in nearly two years.
Friday’s jobs data showed a larger-than-expected surge in nonfarm payrolls last month with slowing wage growth, suggesting that monetary policy could remain tight for some time.
Hot inflation figures could reinforce the Fed’s message that interest rates need to remain higher for longer. The Fed is widely expected to hold rates steady at its Oct 31-Nov. 1 meeting, although some traders are betting on another increase.
Fed minutes
The U.S. central bank is to publish the minutes of its September meeting on Wednesday with market watchers looking for clues on whether policymakers are leaning towards another rate hike before the end of the year.
Investors will also get the chance to hear from several Fed officials during the week including Atlanta Fed President Raphael Bostic, Minneapolis Fed President Neel Kashkari, Boston Fed President Susan Collins, Dallas Fed President Lorie Logan along with Vice Chair Philip Jefferson and Governor Christopher Waller.
Third quarter earnings kick-off
Third quarter earnings season gets underway with reports from several big banks with Wall Street investors eager for a catalyst to revive stocks in the face of surging bond yields.
JPMorgan (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) are all due to report ahead of the market open on Friday with investors on the lookout for signs of the impact from higher rates on everything from loan demand to consumer behavior.
Other companies set to report during the week include snacks and beverages giant PepsiCo (NASDAQ:PEP) on Tuesday, Delta Air Lines (NYSE:DAL) on Thursday and insurer UnitedHealth Group (NYSE:UNH) on Friday.
Earnings season could determine the near-term path for stocks, with the S&P 500 still holding a 10% gain for the year even after its recent pullback.