Investing.com -- Geopolitical tensions remain to the fore, while earnings and U.S. retail sales data will give an insight into the health of the consumer. Federal Reserve Chairman Jerome Powell is to speak while economic data out of China and the U.K. will be closely watched. Here’s what you need to know to start your week.
Earnings season picks up
Third quarter earnings season picks up steam, with several major U.S. companies due to report results in a season expected to show an improvement in profit growth after a tepid first half.
Tesla (NASDAQ:TSLA) kicks off earnings for the megacaps after the close on Wednesday. These companies' shares have been central drivers of the rally in equity markets so far this year.
Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS) are both set to report ahead of the open on Tuesday and several regional banks are also to report during the coming week.
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On Friday, JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) reported quarterly profits that outstripped analysts' estimates boosted by higher interest rates.
Other big names include healthcare giant Johnson & Johnson (NYSE:JNJ), reporting ahead of Tuesday’s market open, consumer products giant Procter & Gamble (NYSE:PG) ahead of Wednesday’s open, Netflix (NASDAQ:NFLX) after Wednesday’s close and Philip Morris (NYSE:PM) ahead of the open on Thursday.
U.S. data; Fedspeak
Aside from earnings, U.S. retail sales figures for September, due on Tuesday, will give investors insight into the strength of consumer spending, which drives around two-thirds of the economy.
Economists are expecting retail sales to have risen 0.2% last month. A stronger-than-expected reading could stir fears of a rebound in inflation and add to the view that the Federal Reserve will need to keep rates higher for longer.
Market watchers will be closely watching comments by Fed Chair Jerome Powell on Thursday when he addresses the Economic Club of New York.
Several regional Fed presidents are also due to make appearances during the week including Patrick Harker, Thomas Barkin, Neel Kashkari, Loretta Mester and Lorie Logan. Fed Governors Lisa Cook and Christopher Waller are also due to make speeches.
Oil volatility
Oil prices surged almost 6% on Friday, with Brent posting its biggest weekly gain since February, as investors priced in the possibility that the conflict in the Middle East could widen as Israel began ground raids inside the Gaza Strip.
The conflict in the Middle East has had little impact on global oil and gas supplies, and Israel is not a big producer. Investors and market observers, however, are assessing how it could escalate and what it might mean for supplies from nearby countries in the world's top oil producing region.