Big earnings reports, homebuilding and the mood of consumers up front
next week
[October 17, 2026] By
DAMIAN J. TROISE
NEW YORK (AP) — Quarterly financial updates from a wide range of major
U.S. corporations, including technology companies and airlines, will
dominate the calendar this week. But there will also be new data on jobs
and the mood of American consumers who feel overburdened by rising
prices on everything from beef to a gallon of gas.
Inflation has also weighed on U.S. corporations, as shown in data last
week on producer prices and import prices, both of which measure rising
costs before they hit the consumer.
Here's a look at some of the key reports coming in the week ahead.
Corporate earnings reports could reveal impact of inflation
Investors will get a broad view of how companies are handling the
persistent pressure of inflation through the lens of toy sales,
streaming entertainment viewership, computer chips and airline bookings.
Wall Street expects another big surge in profits from companies in the
S&P 500 index. Overall, analysts polled by FactSet expect profit growth
of just under 30%, with the energy industry leading the way, followed by
the tech sector.
On Tuesday, General Motors reports quarterly results. Industry analysts
believe profits surged. Toymaker Hasbro and streaming entertainment
giant Netflix also report Tuesday. Wall Street expects a slimmer profit
from United Airlines Holdings on Wednesday. Airlines have raised fares,
but it's difficult to keep pace with rising fuel costs, as well as labor
costs and other inflationary pressures.
Companies with ties to artificial intelligence also report quarterly
earnings. Wall Street expects slimmer profits for Tesla, while Facebook
owner Meta and IBM are expected to report profit growth. Investors want
to know whether all the big AI investments are translating into future
growth and whether a major run-up in stock values is justified.
Home-builder activity may level out following months of declines
The U.S. releases its September report on new home construction Tuesday.
The housing starts report is expected to show that homebuilding edged
higher after two months of declines.
[to top of second column] |
 The housing sector has been in a
slump since 2022, and high mortgage rates have become a difficult
hurdle for homebuyers. So have rising construction costs. Building
materials have grown much more expensive, as has labor, as the Trump
administration continues an aggressive deportation campaign.
Homebuilders have lagged the broader market. KB Home and Lennar are
down more than 20% in 2026, compared with a 14% rise in the S&P 500.
Consumers are growing increasingly anxious about the economy
The University of Michigan releases one final update for its October
sentiment survey, which has been worsening. That tracks with other
consumer confidence surveys showing that households are increasingly
worried about inflation's impact on their budgets and ability to
plan for the future.
While American consumers are clearly feeling glum, they continue to
spend. Part of the reason is simply that prices are higher. For
example, according to data released last week, retail sales
increased 0.8% in September, but if sales at gas stations are
removed, they rose only 0.2%.
What is adding to consumer frustration is that those higher gas
prices appear to be seeping into other parts of the economy.
Wholesale food prices jumped 1.2% from August to September. The data
indicated that rising fuel prices, particularly for diesel used by
long-haul trucks and freight trains, are pushing up the cost of
shipping and warehousing goods.
All contents © copyright 2026 Associated Press. All rights reserved |
