Three reports on Thursday, plus Tesla's deliveries on Friday, will show how spending is holding up with long-term rates at a 24-year high.
A busy Thursday of earnings spans three corners of the economy that higher rates are supposed to squeeze.
Accenture: the enterprise budget
Accenture reports fiscal fourth-quarter results before the open. Analysts expect earnings of $3.19 a share on revenue of $18.05 billion. The consulting giant is a bellwether for how corporations are spending on technology services, including artificial-intelligence projects. Investors will focus on bookings and the outlook for the coming fiscal year, which indicate whether clients are expanding commitments or delaying them as borrowing costs climb.
McCormick: the grocery cart
Spice and condiment maker McCormick also reports before the bell, with analysts looking for earnings of about 76 cents a share on revenue of $1.98 billion. The company sits at the intersection of two pressures: consumers trading down in grocery aisles and input costs tied to energy and shipping. Volumes, not just price increases, will reveal how much demand remains.
Nike: the discretionary wallet
Nike reports fiscal first-quarter results after the close, at about 4:15 p.m. Eastern, with a conference call at 5 p.m. Analysts expect earnings of about 44 cents a share on revenue of $11.35 billion. Athletic apparel is a discretionary purchase, and Nike's results will test whether households are still willing to spend on brands while gasoline and diesel prices remain elevated.
Tesla: the big-ticket purchase
Tesla reports third-quarter deliveries on Friday. A consensus compiled by the company puts the figure at 461,974 vehicles. Car purchases are among the most rate-sensitive decisions consumers make, and with long-term borrowing costs at their highest in more than two decades, the number will show how much financing costs are weighing on demand.
The thread connecting them
Chicago Fed President Austan Goolsbee this week described a "record divergence" between hard economic data and how Americans say they feel. Consumer spending has held up in the official figures even as sentiment has soured. Thursday's reports offer a company-level check on which side of that divide is right.
If Nike and McCormick report steady volumes, the hard data are winning. If both point to trading down and hesitant shoppers, the sentiment surveys may have been the early warning. Accenture adds the corporate dimension: strong bookings would suggest businesses are still investing despite the rate backdrop.
Also on the calendar
Weekly jobless claims, expected near 197,000, arrive before the open, followed by the Institute for Supply Management's manufacturing index at 10 a.m. Friday brings the September payrolls report.