Inflation data, earnings: What to watch this week in markets

Yahoo Finance's Emily McCormick previews the events that could move markets this week, including new inflation data and upcoming earnings releases.

Video transcript

ZACK GUZMAN: But first, a lot of data expected out this week after last week's impressive jobs report. All eyes are shifting back the inflation front with a key inflation reading out in a couple of days. And for more on what to watch this week, I want to bring on Yahoo Finance's Emily McCormick, who kicks us off in the back half of the show today. Emily.

EMILY MCCORMICK: Well, Zack, another busy week in markets. Of course, economic data on inflation is set to be the big focus this week, as you were mentioning. Now, specifically, the consumer price index from the Bureau of Labor statistics will be closely watched on that front on Wednesday, especially after we got that acceleration in average hourly earnings in last week's October jobs report. So already pointing to some sustained inflationary pressures on that note as well.

Now economists don't think that we've seen the peak in inflation just yet on the consumer side. And that consumer price index is expected to have accelerated to a 5.9% year on year increase in October, compared to September's 5.4% rate. So that would mark the fastest annual increase since 1990. And even excluding those more volatile food and energy prices, the CPI is expected to still jump by 4.3%, which would be near the fastest rise since 1991.

Now, of course, as the Federal Reserve and the monetary policymakers there discussed in their policy statement and press conference last week, the factors that have been contributing to these jumps in inflation have come on the supply side with supply chain shortages and rising commodity costs leading companies across industries to announce price increases to try and pass these on. But other factors to really watch in Wednesday's report specifically will be on airfares and lodging prices, since we saw prices in these reopening categories actually come down a bit in September due to the delta wave. But they are expected to post a rebound for October in Wednesday's report.

And we'll also be getting the producer price index out tomorrow for a look at some of these inflationary pressures on the producer side ahead of the CPI. So that will be something to watch tomorrow as well. And then, finally, I want to give a quick overview of some of the earnings reports to watch this week because of course, those are still continuing as well for the third quarter. Now, the majority of S&P 500 companies have already posted their third quarter results, but a number of closely watched companies are still left to report. And one of those will be Disney, reporting after market close on Wednesday.

But taking a look at the scoreboard right now, about 89% of S&P 500 companies have reported third quarter results. And 81% of these have so far exceeded Wall Street's estimates for earnings per share. And the expected year on year earnings growth rate has crept higher to about 39.1%, according to FactSet. And that would mark the third fastest pace for earnings growth in the index since 2010, assuming that we can maintain that rate. So, again, another busy week here in the markets. Earnings and inflation data are on tap. So we'll see how these things shape up in the next couple of days. Guys.

ZACK GUZMAN: Emily McCormick bringing us the latest look there on what is another busy week. They're always busy around--