Markets are heading into a busy week with several events that could shape investor sentiment. The biggest focus will be August inflation data, which could add to the Federal Reserve’s debate over interest rates later this month.
Investors will also track consumer sentiment, energy prices and a long list of corporate earnings.
Apple’s annual product event will add another major point of interest. Oracle, Adobe, Macy’s, Kroger, Casey’s General Stores and American Eagle Outfitters are also scheduled to report results during the week.
Inflation Takes Center Stage
The August Consumer Price Index report is due Friday and could carry added weight after a hotter-than-expected jobs report pointed to a stronger economy than some investors had expected.
The Federal Reserve will use inflation and other economic data as it considers its interest-rate position. Higher energy costs could also affect the August figures. The recent escalation in the U.S.-Iran conflict has contributed to supply disruptions and higher energy prices, which can eventually reach consumers through gasoline and other goods.
According to AAA, average U.S. gasoline prices reached a record for August and were on track to reach a new high around Labor Day weekend.
Higher fuel costs are already affecting consumer behavior. Americans report driving less, and Bureau of Transportation Statistics data supports that trend. Retail spending has also remained soft as households take a more careful approach to purchases.
The University of Michigan’s preliminary September consumer sentiment reading, scheduled for Friday, could provide another look at how Americans are responding to higher costs.
A Look at the Week Ahead
The stock market will be closed Monday for Labor Day. Trading resumes Tuesday, bringing several corporate updates before the key inflation report arrives Friday.
Tuesday: Casey’s General Stores
Casey’s General Stores (CASY) is expected to release its fiscal first-quarter results after the closing bell Tuesday. The company will hold its conference call Wednesday at 8:30 a.m. ET.
The gas station and convenience-store operator has benefited as inflation-conscious shoppers look for lower-cost and convenient options. Investors will be watching sales, expenses and consumer demand for signs of how price-sensitive customers are behaving.
Wednesday: Apple and American Eagle
Apple (AAPL) is scheduled to hold its product event Wednesday at 1 p.m. ET. Bloomberg reported that the company is expected to introduce new iPhone 18 Pro and Pro Max models with updated chips, longer battery life and improved cameras. A foldable iPhone is also expected to be part of the announcements.
The event marks the first major product launch cycle under CEO John Ternus. Apple has faced recent product setbacks, including the cancellation of an all-glass iPhone and delays involving some artificial intelligence features.
American Eagle Outfitters (AEO) will also report second-quarter results Wednesday after the market closes. Its conference call is scheduled for 4:30 p.m. ET.
The retailer gained attention earlier in the year after marketing campaigns featuring actress Sydney Sweeney helped lift its stock. Some of those gains later faded, leaving investors focused on sales and the company’s outlook.
Thursday: Macy’s, Oracle and Adobe
Macy’s (M) will discuss its second-quarter results Thursday at 8 a.m. ET, with the earnings figures expected before the call. Department stores have faced pressure in recent years, but investors reacted positively to Macy’s spring results. Interest in the company also increased after Berkshire Hathaway disclosed a larger stake in Macy’s in May.
Oracle (ORCL) will report fiscal first-quarter results after the market closes Thursday and hold its conference call at 5 p.m. ET. The cloud computing company exceeded expectations in the previous quarter, although its shares dropped after it announced new fundraising plans.
Oracle’s debt levels and dependence on several major customers have also drawn periodic investor attention. The latest results should provide more detail on cloud demand, revenue growth and the company’s financial position.
Adobe (ADBE) is scheduled to report fiscal third-quarter results after Thursday’s close, followed by a 5 p.m. ET conference call. Adobe exceeded expectations and raised its forecast during the previous quarter. However, investors continue to watch the impact of artificial intelligence on its software business.
Leadership is another focus. Adobe recently named Anil Chakravarthy as its next CEO, with the change scheduled for December. He will succeed Shantanu Narayen.
Friday: Inflation and Consumer Sentiment
Friday brings the week’s most closely watched economic release. The Bureau of Labor Statistics is scheduled to publish the August CPI report at 8:30 a.m. ET.
The data will offer a fresh reading on price pressures across the economy. Investors will pay close attention to overall inflation as well as categories that can show whether price increases are broadening or easing.
Kroger (KR) is also scheduled to discuss its second-quarter results at 8 a.m. ET. The company’s earnings are expected shortly before the call.
Kroger matched expectations in the previous quarter but warned that expenses were rising faster than sales. Higher transportation costs and additional spending on discounts and price reductions have added pressure as shoppers become more careful at grocery stores.
The University of Michigan Surveys of Consumers will release preliminary September data at 10 a.m. ET. The reading should offer another measure of household sentiment after recent concerns about prices and fuel costs.
How Markets Closed Last Week
Major stock indexes finished August with gains but ended the following week on a mixed note. The S&P 500 and Nasdaq Composite still posted weekly gains as enthusiasm around artificial intelligence stocks returned before the long holiday weekend.
The Dow, however, ended the week lower.
Treasury yields declined Thursday after Federal Reserve Governor Christopher Waller said he leaned toward keeping interest rates steady in September. Yields moved higher Friday after the August jobs report indicated stronger labor-market conditions.
Crude oil prices also increased as the U.S.-Iran conflict continued.
Other Market Details to Watch
Apple’s stock performance under Tim Cook remains a notable part of the company’s history. Peter Gratton reported that Apple shares gained 2,250% during Cook’s tenure as CEO.
Employment trends also remain relevant. Diccon Hyatt reported that the pace of hiring has slowed to levels close to those seen during the COVID-19 period.
Long-term bond yields could create another challenge for stocks, according to Kara Greenberg. At the same time, higher yields can offer benefits to certain investors, as Polo Rocha noted.
The week’s economic reports and corporate updates will offer a closer look at consumer spending, inflation and business conditions. The August CPI report will be especially important as the Federal Reserve reviews its interest-rate policy.
Apple’s product event and earnings from major companies will add another layer to the week, giving markets fresh information on technology demand, retail activity and corporate performance.
Energy prices and employment trends will also remain relevant as investors assess the broader direction of the U.S. economy.
