What we'd like to see from 3 economic readings and 2 earnings reports next week

Published Sat, Nov 11 202310:17 AM EST

The major averages advanced again this week as earnings results came in largely better than expected, interest rates stabilized and oil prices dropped below $80 a barrel. The S & P 500 finished up 1.3%, while the Nasdaq Composite advanced 2.4% and the Dow Jones Industrial Average inched up 0.65%. Stocks nearly finished lower. Higher bonds yields on Thursday led to a major sell-off that ended the longest winning streaks for the S & P and Nasdaq in two years. A late rally on Friday put equities back in the black for the week. The lion's share of the S & P 500 — 92% — has now reported earnings, with 81% of those delivering an upside earnings surprise and 61% reporting a beat on revenues, according to FactSet. In the portfolio, Coterra Energy (CTRA) put up solid results with strong cash flow generation on the back of better-than-expected production. Emerson Electric (EMR), on the other hand, failed to demonstrate consistent execution and we were forced to downgrade shares to a 3 rating. We liked what we heard from Disney (DIS) as management increased its cost-cutting targets and guided to about $8 billion in free cash flow in fiscal 2024. If achieved, that would be the greatest free cash flow year since fiscal 2018. Finally, the market overreacted to Wynn Resort's (WYNN) miss in Macau and we stepped in to pick up some shares on Friday. Looking ahead, we'll get a couple more earnings results and some key inflationary data to chew on. The macroeconomic report of the week comes on Tuesday: the consumer price index (CPI). Per usual this year, we're looking for disinflation. And while the headline number is important, it's the core number that the market is likely to focus on as it strips out food and energy prices, both of which are inherently volatile. As of Friday, the consensus expectation is for a 3.3% annual increase, down from the 3.7% rate of increase in September. At the core level, we're looking for a 4.1% rate of advance, in line with last month. Those are the expectations. Anything weaker — but not so low that it sparks fears of a hard landing — will be cheered by the market. Expect the Street to scrutinize the details. One line item we're watching closely is the shelter index, as this has proven a stickier area of inflation than other sectors of the economy. It also punches above its weight in terms of economic impact given the associated goods and services that come with building new housing. The producer price index (PPI) arrives on Wednesday. The CPI is the more important of the two, but the PPI is important because it can point to what we may see on future CPI readings. High input costs can ultimately translate into higher selling prices as business look to protect profits. October retail sales are also released on Wednesday. With many wondering how much buying power the consumer has left and expectations for holiday spending growth to be muted, the current expectation is for a small pullback from September. That's not too surprising given many are feeling the pain from higher prices. We also wouldn't be surprised if folks held off on shopping in October in anticipation of holiday discounts. Lastly, housing starts hit Friday morning. Shelter cost inflation has been stubborn, partly due to a lack of supply, which supports higher list prices that are then compounded by high mortgage rates. As a result, the more home starts the better. Currently, the consensus estimate stands at a seasonally adjusted annual rate of 1.334 million, which would be a slight decrease from September. Earnings . TJX Companies (TJX) delivers its third-quarter numbers on Wednesday before the bell. The last time we heard from TJX, management said the third quarter —the one being reported next week — was off to a "very strong start." So the question is: Did that strength sustain through the quarter and if so, did it carry into the current one, too. Looking ahead, we're especially interested in hearing how the off-price buying environment and consumer spending power looks going into the holiday shopping season. We know the consumer is becoming increasingly budget conscious and value-oriented and that is a high-level concern. However, while aggregate spending is not expected to see much growth, TJX is in a position to win as it offers high-quality goods at discounts and a treasure-hunting experience shoppers love. For Palo Alto Networks (PANW), the question is the same as it's been all year: Is it experiencing the slowdown some its security provider rivals are reporting? Or is it the cause, by grabbing share? This is the third time this year in which PANW took a hit ahead of the release due to negative comments from peers. The last two times the fears were unwarranted because Palo Alto was indeed the cause of their struggles. We fell pretty good about the name and the mission-critical nature of its offerings. Cyber security is a must-have for companies since proprietary data is the ultimate currency. Here's the full rundown of all the important domestic data in the week ahead. In this past week, we bought 150 shares of DuPont (DD) and added 75 shares of Wynn Resorts (WYNN). Monday, Nov. 13 Before the bell: monday.com (MNDY), Tyson Foods (TSN), Tower Semiconductor (TSEM), Capital Product Partners L.P. (CPLP), Genius Sports Limited (GENI), Henry Schein (HSIC) After the bell: Fisker Inc (FSR), Spero Therapeutics (SPRO), Rumble (RUM), Star Bulk Carriers Corp (SBLK), Beauty Health Company (SKIN), Asure Software (ASUR), Gladstone Capital Corp. (GLAD), TeraWulf Inc (WULF), Harrow Health (HROW), Sanara MedTech (SMTI), Afya Limited (AFYA) Tuesday, Nov. 14 8:30 a.m. ET: Consumer Price Index Before the bell: Home Depot (HD), Sea Limited (SE), Paysafe Group Holdings Limited (PSFE), Canadian Solar Inc (CSIQ), Aramark Holdings Corp. (ARMK), Oaktree Specialty Lending Corporation (OCSL), On Holding AG (ONON), Workhorse Group (WKHS), BioXcel Therapeutics (BTAI), IHS Inc (IHS), Rewalk Robotics (RWLK), Acurx Pharmaceuticals (ACXP), Energizer Holdings (ENR) After the bell: Pioneer Power Solutions (PPSI), AST SpaceMobile (ASTS), Rekor Systems (REKR), Sara Lee Corp. (SLE), Vintage Wine Estates (VWE), Canoo (GOEV), Momentus Inc (MNTS), SIGMA Lithium Corporation (SGML), AlTi Global (ALTI), QuickLogic Corporation (QUIK), Arcturus Therapeutics (ARCT), Dada Nexus Limited (DADA), Flexible Solutions International (FSI) Wednesday, Nov. 15 8:30 a.m. ET: Producer Price Index 8:30 a.m. ET: Retail Sales Before the bell: TJX Companies (TJX) , Target Corp. (TGT), Advance Auto Parts (AAP), JD.com (JD), ZIM Integrated Shipping Services (ZIM), XPeng (XPEV), Endava (DAVA), Fiserv (FI) After the bell: Palo Alto Networks (PANW) , Cisco Systems (CSCO), PennantPark Floating Rate Capital (PFLT), Chemical & Mining Co. of Chile (SQM), PennantPark Investment Corp. (PNNT), Copa Holdings S.A. (CPA) Thursday, Nov. 16 8:30 a.m. ET: Initial jobless claims 9:15 a.m. ET: Industrial Production & Capacity Utilization Before the bell: Alibaba Group Holding (BABA), Walmart (WMT), Macy's (M), Arcos Dorados Holdings (ARCO), NICE (NICE), NetEase (NTES), Bath & Body Works (BBWI), Dingdong (Cayman) Limited (DDL), Warner Music Group Corp (WMG) After the bell: Applied Materials (AMAT), Ross Stores (ROST), Gap (GPS), Beazer Homes USA (BZH), Dolby Laboratories Inc (DLB), Woodward (WWD), American Software (AMSWA), ESCO Technologies (ESE), ZTO Express (ZTO) Friday, Nov. 17 8:30 a.m. ET: Housing Starts & Building Permits Before the bell: Yatra Online (YTRA), Atkore International Group (ATKR), BJ's Wholesale Club (BJ) (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

A T.J. Maxx store in Pasadena, California.

Mario Anzuoni | Reuters

The major averages advanced again this week as earnings results came in largely better than expected, interest rates stabilized and oil prices dropped below $80 a barrel.

The S&P 500 finished up 1.3%, while the Nasdaq Composite advanced 2.4% and the Dow Jones Industrial Average inched up 0.65%.