Services survey, Fed minutes and big earnings fill the week ahead
Investors face a light but pointed calendar this week, starting with a survey of service businesses Monday at 10 a.m. ET. Minutes from the Federal Reserve's September meeting come Wednesday afternoon. Results from Constellation Brands, PepsiCo and Delta Air Lines will show how shoppers and travelers are handling high prices.
Wall Street opens a new week with few major reports but a lot riding on each one. The first comes Monday at 10 a.m. ET, when the Institute for Supply Management releases its survey of service businesses. Services cover most of the U.S. economy, from restaurants and hospitals to banks and airlines, so the report is a quick read on whether spending is holding up.
On Wednesday at 2 p.m. ET, the Federal Reserve will publish minutes from its September meeting, according to the Fed's calendar. Traders will look for clues about how many officials wanted to raise interest rates again to fight inflation. Core prices, measured by the Fed's preferred gauge, rose 3.0% over the year through August, well above the Fed's 2% target.
Friday's jobs report changed the mood. Employers added only 29,000 jobs in September, far below forecasts, and the unemployment rate rose to 4.2%. After that, traders cut the odds of an October rate hike sharply, though many still expect one by December.
Company results also start to arrive. Constellation Brands, which sells Corona and Modelo beer in the U.S., reports Tuesday after the closing bell. PepsiCo reports Thursday at 6 a.m. ET, with a call at 8:15. Delta Air Lines reports Friday before the market opens. Together, they offer a look at beer sales, snack prices and holiday travel demand.
The bigger number comes next week. The September consumer price index is due Oct. 14 at 8:30 a.m. ET, and it will also set the 2027 Social Security cost-of-living raise.
Some background: The Fed raised rates this year as energy prices jumped during the war with Iran. Higher rates fight inflation but make borrowing costlier for homes, cars and businesses.
What we know: ISM services is Monday, Fed minutes are Wednesday, and three big companies report this week.
What we don't: Whether the data push the Fed toward another hike or a pause.
Where outlets agree CNBC and KPMG both report that September payrolls rose only 29,000 as unemployment climbed to 4.2%, setting the tone for this week's data.
Where they differ Some economists say the weak hiring argues for the Fed to pause, while others warn that inflation near 3% still calls for higher rates.