October 21, Economic Pulse – Key Events This Week

 

Key Events This Week

Tesla Earnings and Tech Stock Valuations

• Tesla’s upcoming earnings report will be a crucial indicator of the overall health of tech stocks.
• A disappointing performance could exacerbate concerns about stretched valuations in the sector, particularly given the S&P 500’s elevated price-to-earnings ratio.

 

Semiconductor Sector

• The semiconductor sector has experienced significant volatility in recent weeks, driven by factors such as ASML’s outlook and TSMC’s strong earnings.
• The sector’s performance will continue to be closely monitored, with companies like Texas Instruments and Lam Research reporting earnings this week.

 

Economic Data and Central Bank Meetings

• The U.S. economy will be in focus with the release of data on housing, durable goods, consumer sentiment, and initial jobless claims.
• The Federal Reserve will publish its Beige Book and several regional Fed officials will provide insights into the economic outlook.
• Global finance leaders will gather at the IMF and World Bank annual meetings to address pressing economic challenges, including high debt levels and low growth.
• Russia will host a BRICS summit, seeking support amid its ongoing standoff with the West.

 

Oil Prices

• Oil prices remain under pressure due to concerns about weakening demand, particularly in China, and the ongoing conflict in the Middle East.
• The shift towards electric vehicles and economic uncertainty in China will continue to weigh on the demand outlook.
• The evolving situation in the Middle East, including the recent escalation between Israel and Hamas, introduces additional uncertainty to the oil market.

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Weekly Events Schedule

Monday, October 21

• China:
  • Loan Prime Rate (LPR)
• United States:
  • Existing Home Sales
  • Richmond Fed Manufacturing Index
• Canada:
  • Consumer Price Index (CPI)

Tuesday, October 22

• United States:
  • New Home Sales
  • Conference Board Consumer Confidence
• Germany:
  • ZEW Economic Sentiment Index
• United Kingdom:
  • GfK Consumer Confidence

Wednesday, October 23

• United States:
  • Durable Goods Orders
  • Initial Jobless Claims
  • Federal Reserve Beige Book
• Japan:
  • Tankan Manufacturing Survey
• Canada:
  • GDP Growth Rate

Thursday, October 24

• United States:
  • Pending Home Sales
• Eurozone:
  • Consumer Price Index (CPI)
• United Kingdom:
  • Retail Sales

Friday, October 25

• United States:
  • Personal Income and Spending
  • PCE Price Index
  • University of Michigan Consumer Sentiment Index
• Canada:
  • GDP Growth Rate

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Volume analysis for the Euro, Oil and S&P500 futures are shown in the slides below.

Daily timeframes include volume support (indicated by green band) and resistance (indicated by red band).