Market Movers: PCE Inflation, HP, and Dell Earnings

As the market braces for another wave of earnings reports and economic data, investors are keeping a close eye on key indicators. The release of Personal Consumption Expenditures (PCE) inflation data for October is set to shed light on consumer spending and price pressures, while earnings from tech giants like HP and Dell will provide insights into corporate performance. Here are three things investors need to watch as the market navigates the week ahead.

1. PCE Inflation data: The PCE inflation report, due on Wednesday, is expected to show an increase in annual inflation to 2.3% in October, up from 2.1% in September. Economists anticipate core inflation, which excludes volatile food and energy prices, to rise to 2.8% over the year. This uptick could complicate the Federal Reserve's plans to gradually ease interest rates, as it signals persistent price pressures. Investors should closely monitor this data, as it may influence market expectations for future interest rate hikes and Fed policy.


2. HP and Dell earnings: Both HP and Dell are set to release their quarterly earnings reports this week. HP's earnings call on Tuesday, November 26, will provide insight into the company's performance in the fourth quarter of fiscal 2024. Analysts expect HP's adjusted EPS to come in at 85 cents, with revenue growth of 1.7% year-over-year. Meanwhile, Dell is scheduled to report its earnings on Wednesday, November 27. Investors will be watching for updates on Dell's server and networking revenue, which soared 58% in the prior quarter, driven by demand for AI servers.


3. Stock futures: As the market awaits the PCE inflation data and earnings reports, stock futures are little changed. The Dow Jones Industrial Average's futures are flat, while those of the Nasdaq and the S&P 500 are slightly lower. Investors are also keeping an eye on updates to third-quarter GDP, pending home sales, and business inventories. Bitcoin has rebounded, trading above $93,000, while gold and crude futures have also gained. However, 10-year Treasury yields remain lower, indicating ongoing demand for safe-haven assets.

As investors await the PCE inflation data and earnings reports from HP and Dell, they should remain vigilant to the potential impact of these releases on market trends and their portfolios. By staying informed and adapting their strategies accordingly, investors can better navigate the shifting landscape of the stock market.