5 things to know before the stock market opens Wednesday

Title: 5 Crucial News Items Ahead of the Stock Market Opening on Wednesday, October 20, 2021

1. **Federal Reserve Interest Rate Decision:** The Federal Reserve (Fed) is scheduled to announce its latest interest rate decision at 2:00 PM ET on Wednesday. The Fed is widely expected to keep its benchmark interest rate unchanged at the current range of 0.25% to 0.50%. However, investors will be closely watching the Fed's statement for any hints about future rate hikes and the central bank's assessment of the economic recovery.

2. **Earnings Reports:** Several major companies are set to release their quarterly earnings reports before the market opens on Wednesday. Notable reports include Microsoft Corporation (MSFT), Intel Corporation (INTC), and Caterpillar Inc. (CAT). Analysts expect Microsoft to report earnings per share (EPS) of $2.13 on revenue of $43.1 billion. Intel is projected to report EPS of $1.31 on revenue of $18.3 billion, while Caterpillar is expected to report EPS of $2.48 on revenue of $14.8 billion. Investors will be looking for signs of continued growth and any potential guidance for future quarters.

3. **Consumer Price Index (CPI) Data:** The U.S. Bureau of Labor Statistics will release its latest Consumer Price Index (CPI) data at 8:30 AM ET on Wednesday. The CPI measures the average change in prices over time for a basket of goods and services. Economists expect the CPI to have increased by 0.4% in September, following a 0.5% increase in August. Any significant deviation from this forecast could lead to increased volatility in the markets.

4. **Jobless Claims:** The U.S. Department of Labor will release its weekly jobless claims report at 8:30 AM ET on Thursday. Initial jobless claims are expected to have decreased by 10,000 to 325,000 for the week ending October 16. Continuing claims are projected to have decreased by 30,000 to 2.8 million. A lower number of jobless claims indicates a strengthening labor market and could be a positive sign for the economy.

5. **OPEC+ Meeting:** The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, will hold a meeting on October 20 to discuss production policy. OPEC+ agreed to gradually increase production by 400,000 barrels per day each month from August until the end of 2022. However, there have been concerns about the impact of rising COVID-19 cases and slowing economic growth on oil demand. Any changes to OPEC+ production policy could have a significant impact on oil prices and energy stocks.