Major quarterly financial updates from various U.S. corporations, including technology firms and airlines, will dominate the economic calendar this week. These reports coincide with new data regarding the jobs market and consumer sentiment as many Americans struggle with rising costs for essentials like beef and gasoline.

How will corporate earnings and inflation interact?

Investors are looking for evidence of how businesses are managing persistent inflationary pressures. Analysts polled by FactSet anticipate profit growth of nearly 30% for S&P 500 companies, with the energy and technology sectors expected to lead. Key upcoming reports include:

  • General Motors, Hasbro, and Netflix on Tuesday.
  • United Airlines Holdings on Wednesday.
  • Meta and IBM, which are expected to show profit growth.
  • Tesla, which may see slimmer profits.

These results will help determine if massive investments in artificial intelligence are yielding the expected growth. Airlines, specifically, face a difficult task as they attempt to raise fares to keep pace with rising fuel and labor costs.

Is homebuilder activity stabilizing?

The U.S. is scheduled to release its September report on new home construction this Tuesday. While the housing sector has faced a slump since 2022 due to high mortgage rates, officials expect housing starts to show a slight increase after two months of declines. However, builders face challenges from expensive materials and rising labor costs, which have been impacted by the administration's deportation campaign.

The toll of rising costs

Inflation has already begun to weigh on U.S. corporations, as evidenced by recent data regarding producer and import prices. These metrics measure the rising costs of goods before they reach the general public. This pressure is reflected in the housing market, where companies like KB Home and Lennar have seen stock declines of more than 20% in 2026, trailing the broader S&P 500.

Why is consumer sentiment declining?

The University of Michigan will release its final October update for its sentiment survey, which has shown a downward trend. This reflects broader concerns among households regarding how inflation affects their budgets and future planning. Despite this growing anxiety, many consumers continue to maintain their spending habits.

FAQ

Which sectors are expected to see the most profit growth?

Analysts expect the energy industry to lead profit growth, followed by the technology sector.

What is impacting the housing market?

High mortgage rates, rising construction costs for materials, and labor shortages are currently hindering the housing sector.