Wall Street is gearing up for a demanding week ahead, filled with corporate earnings announcements, key central bank rate decisions, and a significant U.S. Treasury statement on near-term funding. The week will culminate with the conclusion of the Federal Reserve's November policy meeting on Wednesday, followed by a rates announcement and a media session with Chairman Jerome Powell.
The Fed's benchmark lending rate is projected to remain at 5.25%-5.5%. However, market participants are eagerly awaiting Powell's insights on inflation trends and the potential for a rate hike in early 2024.
Simultaneously, the Treasury's quarterly refunding statement will provide details on the volume of marketable securities to be issued in the upcoming months. This move is aimed at funding the record budget deficit of $2 trillion. Market forecasts suggest a refunding total of around $114 billion, which would increase the size of benchmark 10-year auctions to about $41 billion and long-bond sales to $25 billion.
In addition to these economic indicators, as many as 164 S&P 500 companies are expected to report their third-quarter results this week. Overall earnings are projected to increase by 4.3% to $478.2 billion. Key earnings reports from Apple (NASDAQ:AAPL), Mcdonald's, Eli Lilly (NYSE:LLY), CVS Health (NYSE:CVS), Starbucks (NASDAQ:SBUX), Pfizer (NYSE:PFE), and Advanced Micro Devices (NASDAQ:AMD) are among those anticipated.
Labor market data will also be in focus this week, with reports including the September Job Openings and Labor Turnover report, ADP (NASDAQ:ADP)'s National Employment report, and the October non-farm payroll report under scrutiny. The latter is expected to indicate that 188,000 new jobs were added last month. This would represent a decrease from 336,000 in September, while average hourly earnings are projected to have risen by 4%.
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