Here are the key events taking place on Thursday that could impact trading.
The most anticipated economic report of the week is out at 0830 ET on Thursday…
CONSUMER PRICES: The Bureau of Labor Statistics is expected to say the consumer price index rose 0.2% month-over-month in September, slightly above August’s 0.1% pop.
On a year-over-year basis watch for prices climb 8.1% in September, easing back from August’s hotter-than-expected reading of 8.3% thanks to moderating energy costs.
It would be the lowest since February, and the third month in a row of slowing growth after June’s 9.1% surge, the highest inflation rate in almost 41 years.
“As the COVID pandemic has shifted to the background, inflation has become public enemy number-one. Awaiting the monthly update on prices at the retail level, it appears the year-over-year change in the CPI will remain elevated through the end of the year,” said Bankrate.com senior economic analyst, Mark Hamrick. “There has been relief from high gasoline prices which tend to aggravate consumers the most, but elevated food and shelter prices appear to be sticking around for a while as unwanted visitors.”
If you factor out volatile food and energy costs, the core consumer price index is anticipated to rise 0.5% in September, slightly trailing a 0.6% spike the previous month.
Annually, core CPI is forecast to climb 6.5% in September. That would be the second month in a row of rising core inflation, following a larger-than-expected spike of 6.3% in August.
JOBLESS CLAIMS: The Labor Department will release the number of new claims for unemployment benefits last week, likely to show that the labor market remains tight. Expectations are for 225,000, up slightly from a higher-than-expected 219,000 the prior week.
Continuing claims, which track the total number of workers collecting unemployment benefits, are expected to rise for a second week to 1.365 million.
VICTORIA’S SECRET: Shares were 3% higher in extended trading. The owner of Victoria’s Secret, PINK and Happy Nation said it expects third quarter operating income will be towards the high end of its previously communicated guidance range of $10 million to $40 million, and earnings are estimated to be towards the high end of the previously communicated guidance range of $0.00 to $0.25 per diluted share.
The updated operating income and earnings per diluted share guidance is based on a net sales decline in the high single digit range compared to last year, which is consistent with the company’s previously communicated guidance.
The world’s largest intimates specialty retailer hosts an investor day Thursday in Chicago.
TIMKENSTEEL: Shares were down more than 3% in extended trading. The maker of high-quality specialty steel said a July melt shop explosion that killed one worker and injured two others significantly, impacted third quarter profitability.
The company expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to be in the range of approximately $9 million to $12 million.
Net sales decreased 24% to $316.8 million from the sequential second quarter driven by lower shipments and surcharge revenue per ton, partially offset by higher base sales prices.
The company release full third quarter results on November 3.
EARNINGS AGENDA: A handful of companies will report third quarter earnings ahead of the big banks on Friday. Watch for results from Dow member and drug retailer Walgreens Boots Alliance, the world’s largest asset manager BlackRock, and Delta Air Lines, all posting ahead of Thursday’s opening bell.