Next Week's News Today (Main Street's Economic Angst and Presidential Debates)

If it's Thursday, then it's time for Next Week's News Today. Last week we were once again dead on in our prediction for the week's business/political news cycle. We, however, did NOT predict that the Senate would beat the House to passing the economic rescue package. What a week.

This coming week is interesting for a few different reasons. First, there are a number of economic reports which will be used as news pegs within the context of whether things are getting worse or better despite having past the rescue legislation. However, it will be technically inaccurate for any of the economic reports next week to hang the burden on the legislation, the reason being is that the reports will be data from August and/or September. Thus, not post passage. That's important to remember when reading the news next week.

The news hooks to exam the economy will be Tuesday's reports on consumer credit and the minutes from September's Federal Open Market Committee (FOMC - you'll see this acronym pop up next week). Furthermore, pending home sales for August will be out on Wednesday, and unemployment numbers on Thursday. Both will get attention, and both will be just in time for Thursday night's presidential debate moderated by Tom Brokaw.

Thursday's debate is important for the odd reason that style will impact substance. What do we mean? We mean that it is a town hall format. Both presidential candidates will be tested in a way they weren't quite last time in that they'll have to play the role of explaining the economy in real and basic terms. The danger for voters is getting a bumper sticker answer. The benefit is that you may get more details.

Assignment desk editors everywhere will be pondering the same question for ways to explain the economy to their readers/viewers, and next week offers them three easy swings at the answer: Earnings for Safeway on Tuesday, earnings for Costco on Wednesday, and earnings for GE on Friday. Each are basic companies that middle America can relate to, thinking back to a prior election, we'd call the demographic the "soccer moms". Creative journalists will be able to show in visual ways for Costco and Safeway just how America is doing amidst economic angst. GE is a tougher nut to crack to be sure, but the number of employees, and its ability to take the Dow up and down are key aspects to making their earnings matter to those focused on making a house payment, and worrying about college.

As always, notable events are broken down by days below.

MONDAY 10/6
Earnings: 0

Economic Reports: 0


TUESDAY 10/7
Earnings: Alcoa; Safeway; YUM! Brands;

Economic Reports: Consumer Credit; Federal Open Market Committee (FOMC) Minutes from September 16


WEDNESDAY 10/8
Earnings: Costco Wholesale Corp.; Monsanto Co.; Progressive Corp.

Economic Reports: Pending Home Sale for August; Crude Inventories


THURSDAY 10/9
Earnings: RPM Intl Inc.; SLM Corp

Economic Reports: Initial (Unemployment) Claims; Wholesale Inventories

Politics: 2nd Presidential Debate - moderated by Tom Brokaw. Format: All topics fair game in a town hall style, with two minute answers and one minute follow-up discussions.


FRIDAY 10/10
Earnings: GE

Economic Reports: Export Prices for September (except Agricultural); Import Prices for September (except for Oil); Trade Balance for August