U.S. stock futures are starting the week near the flat line as investors prepare for a busy stretch of economic data and corporate earnings. FinTech TV correspondent Mark Payton joins Remy from the Cboe trading floor in Chicago to break down the key market drivers, including volatility, small cap stocks, oil prices and the September Consumer Price Index report.
Investors are watching the VIX for signs of changing market sentiment and the Russell 2000 for indications that small cap stocks could begin catching up with the broader market. Wednesday’s inflation report is also in focus, as the latest CPI figures could influence expectations for the Federal Reserve’s interest rate decisions later this month. Meanwhile, geopolitical tensions involving the Middle East, Russia and Ukraine continue to keep energy markets on investors’ radar.
Third quarter earnings season is also getting underway, with major banks including JPMorgan, Goldman Sachs, Citigroup and Wells Fargo set to report results. Traders will be watching trading revenue, lending activity, consumer spending and signs of stress among borrowers, alongside investment banking activity such as mergers, acquisitions and initial public offerings.
With analysts expecting strong third quarter earnings growth across the S&P 500, corporate results and management guidance could play a major role in shaping market sentiment. Payton explains why investors will be listening closely to bank executives for clues about the health of the economy and the outlook for the months ahead.