Inflation updates, housing market data, and employment figures are set to be the main focus of the economic calendar this week. These reports follow the U.S. midterm elections, where Democrats secured victories amid persistent high prices impacting consumers and businesses.
Economists, investors, and policymakers are closely monitoring these indicators for a clearer understanding of the ongoing effects on prices, housing, and employment. The latest consumer price index (CPI) report on Tuesday is projected to show inflation rising to 3.9% in October from 3.7% in September. The CPI has indicated inflation exceeding 3% since March.
On Friday, the U.S. will release the producer price index (PPI) for October, which measures inflation before it reaches consumers. The September PPI report showed the largest increase since December 2022, driven by rising fuel prices. Despite these trends, crude oil prices experienced a significant drop in the past week.
The housing market continues to be affected by high prices and rising interest rates. Thursday's report on existing home sales from the National Association of Realtors is expected to show little change from September, with sales hovering near a 4 million annual pace, below the historical norm. Home prices have seen year-over-year increases for 39 consecutive months, and the average 30-year mortgage rate remains near its highest level in nearly three years. The Federal Reserve is expected to consider another interest rate hike in December to combat inflation.
Weekly unemployment claims, a proxy for layoffs, will be released on Thursday and are currently at historically low levels. The broader job market remains resilient, with U.S. employers adding 165,000 new jobs in October. However, wage growth has not kept pace with inflation, intensifying the financial strain on households, and finding new employment may become more challenging after layoffs.
Notable corporate earnings reports are also scheduled, offering insights into sectors like artificial intelligence, data centers, and entertainment. CoreWeave, a data center company, will report earnings on Tuesday. Cisco and Applied Materials are scheduled to release results on Thursday. SkyDance is set to post earnings on Monday, following its acquisition of Warner Bros. Discovery.