The Week Ahead
October 5, 2026
Economic news
U.S. Balance of Trade
Economists and investors will undoubtedly be watching to see where the August trade balance stands after the trade deficit expanded to $88.6 billion in July1 compared to $71.1 billion in June.
This continues to be a difficult part of the administration’s approach to the U.S. economy with narrowing the trade deficit with foreign producers proving to be a very challenging endeavor. As we approach the midterm elections, it will be interesting to see what affect a worsening or improving trade deficit will have.
U.S. Jobless Claims
The week ended September 26th was a decent one for unemployment with the total number of Americans filing for unemployment benefits declining by 1,000 according to the U.S. Department of Labor.2 The newest initial jobless claims will be announced on October 8th. In all, initial jobless claims have been declining since last November; an encouraging statistic for the country.3
Earnings Related Market Movers
Levi Strauss & Co (LEVI)
Levi Strauss has had a few years of tepid expansion. The story changed only somewhat at the end of fiscal 2025. Net revenues came in at 1% growth on a reported basis, and U.S. net revenues declined 7%. The direct-to-consumer part of the business is what really shined, with 8% revenue growth on a reported basis. The primary areas of growth came from Europe and Asia, which saw revenues increase by 9% and 11% respectively.4 The weak spot for Levi Strauss was America, which saw net revenues decrease by 4% on a reported basis.
Net revenues from e-commerce also performed very well, increasing 19% on a reported basis. According to the company’s fiscal fourth quarter results, direct-to-consumer sales represented 49% of net revenues.
Looking forward, Levi Strauss provided fiscal 2026 guidance that anticipates reported revenue growth of 5% to 6%, with gross margins expected to be flat compared to the prior year. Forecasts for adjusted diluted earnings per share were $1.40 to $1.46. That would mark very little change from 2025’s earnings of $1.45.
With low expectations in terms of earnings, Levi Strauss does not seem to have much momentum. Investors will likely be looking to see what happens with the continued push for direct-to-consumer sales, as well as if sales in the Americas improve.
Pepsico (PEP)
Trading near a 52-week low, Pepsico is also seeing more challenging times, as consumers struggle with higher costs of living. While earnings per share increasing by 137% in the second quarter may seem positive, on an adjusted basis, the company narrowly missed estimates for adjusted earnings per share, bringing in $2.20 versus an expected $2.21.
Domestically, Pepsico had flat volumes, and the beverage division had volume decline 4%. It has been a bit of a lopsided scenario, as global volume for Pepsi food increased 3%, and beverages rose 2%.
CEO Ramon Laguarta pointed out that “results were tempered in the quarter as U.S. food and beverage category performance moderated with consumer budgets tightening due to rising inflationary pressures.”5
Pepsico has had some positive things happening internationally, and investors will likely be looking to see if the positive trend continues. If domestic sales remain pressured by a weakened consumer, continued growth overseas could compensate.
Delta Airlines (DAL)
Delta Air Lines has seen its sales growth rates slow since fiscal 2022; the company finished 2025 with just 2.79% revenue growth. It heads into next week with investors focused on whether the momentum reported in the June quarter has continued into the second half of 2026.
Bucking the broader trend, Delta reported operating revenue gains of 19% in the second quarter to $19.75 billion. Still, net income declined 25% year-over-year to $1.6 billion.6
One of the keys to watch is Delta’s quarterly outlook. In July, Delta projected mid-teens year-over-year revenue growth for the September quarter, an operating margin of 11% to 13%, and adjusted earnings per share of $2.00 to $2.50, while reaffirming full-year adjusted EPS guidance of $6.50 to $7.50 and free cash flow of $3 billion to $4 billion. Delta has scheduled its September quarter 2026 financial results for Friday, October 9, making the coming week an important period for gauging demand, fuel costs, margins and the trajectory of the company’s full-year outlook.
1 https://tradingeconomics.com/united-states/balance-of-trade
2 https://tradingeconomics.com/united-states/jobless-claims
3 https://tradingeconomics.com/united-states/jobless-claims
4 https://s23.q4cdn.com/172692177/files/doc_financials/2025/q4/Exhibit-99-1-4Q-2025-Press-Release-wdesk.pdf
5 https://www.cnbc.com/2026/07/09/pepsico-pep-q2-2026-earnings.html
6 https://ir.delta.com/news/news-details/2026/Delta-Air-Lines-Announces-June-Quarter-2026-Financial-Results/default.aspx
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