The two biggest questions on the stock market will come into focus next week as Wall Street tries to stabilize itself after a volatile start to October. A key test is earnings. company, as the third-quarter reporting season begins. JPMorgan, Morgan Stanley and other major banks are reporting their numbers, while Delta Air Lines is among the top players outside of the financial sector. The sentiment is geared towards low income and is getting worse and worse. FactSet’s John Butters said in a September 30 note that the third quarter saw the largest earnings estimate cut for S&P 500 companies in more than two years, but many in Wall Street thinks the estimate is still too high, both for this quarter and the coming quarters with the potential for a recession. Nick Raich of The Earnings Scout said: “If there’s one disconnect, it’s expectations that haven’t dropped enough. “I think we’re going to see overall earnings expectations maybe down 10% or 15% this earnings season. They’re only down like 2% last earnings season. So that means the corrections. Negative change will accelerate towards the downside,” he added. Initial earnings results were not good. As of Thursday, 20 S&P 500 companies have reported, and five have seen their shares fall more than 20%, Raich said. Advanced Micro Devices then joined the party on Thursday night, warning that its revenue would drop in the third quarter and send its stock plunging on Friday. Even with investor pessimism and widespread belief that earnings results are too high, early reports suggest that the third-quarter report could still cause big swings. “Disappointing earnings won’t be a surprise, the question is whether those earnings will disappoint investors,” said Frank Gretz, technical analyst at Wellington Shields. . “How much does bad cost?” Inflation In addition to earnings, inflation will be the main focus for investors next week. The two main reports that will be released are the producer price index on Wednesday and the consumer price index on Thursday. The US economy is currently being boosted by a flexible labor market, but many economists fear the Federal Reserve’s fight against inflation could lead to a recession. “We’re at a point right now where I think inflation data is more important than labor market data, where until the inflation data is adjusted, the Fed won’t feel comfortable slowing down. “, Eric Winograd, director of developed market economics. Research at AllianceBerntein. There have been some signs that inflation is easing, with prices for the paid components of manufacturing surveys falling and signs growing that the rental market is starting to turn upside down like the market. previous housing school. But those numbers have yet to show up in the Fed’s key inflation indicators, and the central bank has said it wants to see inflation fall for months before changing course. “Inflation, inflation, inflation. We need to see evidence that price pressures are easing. I think there’s good evidence that the economy is starting to slow, but more will be needed than that.” we’ve seen to bring inflation back,” Winograd said.Previous Calendar Week Monday 1:35 p.m. Fed Vice President Lael Brainard Tuesday 6:00 a.m. NFIB Small Business Index Wednesday Earnings: Pepsico 8: 30 am Producer Price Index 1:45 pm Fed Vice Chairman Michael Barr 2:00 pm Treasury Budget 2:00 pm Fed minutes 6:30 pm Fed Governor Michelle Bowman Thursday Earnings: Delta Air Lines, Walgreens Boots Alliance, Domino’s, BlackRock, Fastenal, Commercial Metals 8:30 a.m. Jobless claims 8:30 a.m. Consumer Price Index Friday Earnings: JPMorgan Chase, Wells Fargo, Morgan Stanley, Citigroup, UnitedHealth Group, PNC Financial, US Bancorp, First Republic Bank 8:30 a.m. Import-Export data 8:30 a.m. Retail sales 10:00 a.m. Business inventories 10:00 a.m. Sentiment University of Michigan consumer