Bank earnings, retail sales and more: Friday's 5 things to know

Traders will also study a slew of economic reports in the form of retail sales, import & export prices and consumer sentiment

Here are the key events taking place on Friday that could impact trading.

BANK EARNINGS: The big banks unofficially kick off third-quarter earnings season Friday morning.

JPMorgan Chase, Wells Fargo, Citigroup, and Morgan Stanley are all scheduled to report ahead of the opening bell. 

Rising interest rates should help the banks by boosting net interest margin and net interest income. On the flip side, the jump in borrowing costs could mean that loan demand takes a hit. 


Bank logos

major banks kick off earnings season for financial institutions. (REUTERS/File Photo / Reuters Photos)

The falloff in deal-making and underwriting fees will take a bite out of profits, but that will be at least partially offset by a pickup in trading activity thanks to the latest market volatility. 

Finally, investors will pay close attention to the banks’ outlooks in the face of global economic uncertainty and the growing risk of recession.

RETAIL SALES: Economists surveyed by Refinitiv anticipate September's consumer spending to inch up 0.2%, just below August’s unexpected 0.3% rise. 

Excluding the automotive component, spending is seen slipping 0.1% in September, after a surprise 0.3% drop the previous month. 


It would mark the first back-to-back declines since May 2021. 

IMPORT & EXPORT PRICES: Prices of imported goods in September likely fell 1.1% month-over-month, following a 1.0% slide in August.

Cargo containers being unloaded from ship

Port Long Beach California (iStock / iStock)

It would mark the third straight monthly decline, which might ease inflation worries.

For comparison, March’s 2.9% surge marked the biggest increase in 11 years. Meantime export prices are also expected to fall 1.0% in September, matching the decline the prior month.

CONSUMER SENTIMENT: The University of Michigan releases its preliminary index for October. It’s expected to rise slightly to 59.0, the fourth straight monthly increase after tumbling to an all-time low of 50.0 in June when record-high gasoline prices had consumers panicked about inflation. 

A hopper wearing a protective mask as a precaution against the spread of the coronavirus selects produce at the Reading Terminal Market in Philadelphia, Friday, April 22, 2022. (AP Photo/Matt Rourke)

A shopper in a grocery store. (AP Photo/Matt Rourke / AP Newsroom)

With prices still stubbornly elevated, markets will pay close attention to inflation expectations. In September the near-term inflation outlook fell to 4.7%, the lowest in a year. 

The five-year inflation outlook fell to 2.7% in September, the lowest since April 2021.

OIL-DRY: Shares jumped 8% in extended trading after the maker of products for soil in the agriculture, horticulture and sports sectors said fiscal fourth quarter net sales rose 19% to $93.2 million.

Net income jumped to $5.2 million, or 77 cents per share, for the three months ended July 31 compared to $603k, or 8 cents, in the prior year period.


"I am more pleased with the margin and profit improvement experienced during the fourth quarter," said CEO Daniel Jaffee. "While both are still not back to historic norms, we made considerable progress by the end of the year.  We are cautiously optimistic that this momentum will carry over into fiscal year 2023."