Finance Weekly Roundup: Fed Decision, FedEx Earnings, and UAW Strike

Stay informed about the week ahead in finance. Get insights on the Federal Reserve's policy decision, FedEx earnings report, and the impact of the UAW strike on major automakers.

Sep 18, 2023 - 12:08
Sep 18, 2023 - 12:08
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Finance Weekly Roundup: Fed Decision, FedEx Earnings, and UAW Strike
Finance Weekly Roundup: Fed Decision, FedEx Earnings, and UAW Strike

This week holds pivotal events in the financial world. The Federal Reserve, led by Jerome Powell, is gearing up for a major policy decision, with expectations of maintaining interest rates between 5.25% and 5.5%. FedEx is set to announce its earnings, and a United Auto Workers (UAW) strike could impact major auto companies.

The stock market experienced some ups and downs, particularly in tech stocks. The Fed is closely monitoring job market and inflation trends. The Summary of Economic Projections (SEP) will provide insights into the Fed's outlook. The UAW strike could have broad economic implications and may influence the Fed's rate decisions. Market volatility is low, but oil price increases may impact company earnings. The week's economic calendar and notable earnings releases are also outlined. 

S&500

Get ready for a big week in finance! Here's what you need to know

Federal Reserve's Big Decision:

  • The Federal Reserve, led by Jerome Powell, is the star of the show this week.

  • They're meeting on September 19 and 20.

  • On Wednesday at 2:00 p.m. ET, they'll tell us their latest policy decision.

  • Jerome Powell will then speak at 2:30 p.m. ET.

  • Most folks expect the Fed will keep interest rates where they are, between 5.25% and 5.5%.

FedEx Earnings Announcement:

  • FedEx (FDX) is set to reveal its earnings on Wednesday.

  • Investors will be watching closely to see how the company's been doing.

United Auto Workers (UAW) Strike:

  • There's a big strike going on among auto workers.

  • It started last Friday and affects Stellantis (STLA), GM (GM), and Ford (F).

  • Around 13,000 UAW members are involved.

  • The strike could impact car production and the broader economy.

Market Update:

  • Last week, the stock market had its ups and downs.

  • Surprising energy price changes caused some surprises in economic data.

  • But investors still think interest rates will stay the same this week.

Tech Stocks Sliding:

  • The Nasdaq (^IXIC) has dropped by 2.3% this month.

  • The S&P 500 (^GSPC) is down 1.2%, and the Dow Jones (^DJI) is down 0.3%.

  • September can be a tricky month for stocks.

Fed's Focus:

  • Remember, the Fed is watching the job market and inflation.

  • Both seem to be cooling down, which is what the Fed wants.

  • The big question is what the Fed will do later this year.

The Fed's Crystal Ball:

  • The Fed will release something called the Summary of Economic Projections (SEP).

  • This includes what the Fed thinks will happen with inflation, the economy, and interest rates.

  • Last time, they thought interest rates would go up again in 2023.

  • We'll see if they still think that.

UAW Strike's Impact:

  • The auto strike is a big deal.

  • If it gets worse, it could hurt the economy.

  • It might even make the Fed keep interest rates where they are.

Market Volatility:

  • The stock market hasn't been too crazy lately.

  • The Volatility Index (VIX) is low, which means things are pretty calm.

  • But it might not stay that way.

Oil Prices on the Rise:

  • Keep an eye on oil prices.

  • They're going up, and that could affect how much companies earn.

  • Airlines like American (AAL) and Spirit (SAVE) have already had a tough time.

Economic Calendar:

  • Monday: Housing market index

  • Tuesday: Housing starts and building permits

  • Wednesday: Mortgage applications, FOMC Rate Decision

  • Thursday: Jobless claims, existing home sales, leading index

  • Friday: Manufacturing PMI figures

Earnings to Watch:

  • Tuesday: AutoZone

  • Wednesday: FedEx, General Mills, KB Home

  • Thursday: FactSet, Scholastic

Also Read: Auto Workers Go on Strike; Arm Holdings Shares Surge; Market Stability Continues

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