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Pandemic-era unemployment benefits expire, producer price index: What to know this week

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Yahoo Finance’s Brian Sozzi, Jared Blikre, and Ines Ferre break down the economic data to watch this week.

Video Transcript

BRIAN SOZZI: Let's go over to Yahoo Finance's Ines Ferre and see what else investors will have to navigate this week. Ines.

INES FERRE: And, Brian, we're going to take a look this week at initial jobless claims on a Thursday. 343,000 expected. But we will be seeing what the early impacts are on the labor market of expiring unemployment insurance benefits.

So benefits are expiring nationally this week, a couple of different programs and also a benefit from the federal government, which is $300 a week. Now all these programs are expected to impact some 7 and 1/2 million jobless workers, and this is according to the Century Foundation.

And one expert from the Century Foundation told Yahoo Finance that this is the largest cutoff of benefits that we've ever seen. So spending will shrink by some $5 billion each week with the expiration. Now, we already saw some 4 million unemployed workers that lost some of their benefits in June and July-- some or all of their benefits after 26 states have opted out of the federal programs early. But today definitely that federal program ending, and it's expected to impact more than 7 million workers-- or jobless workers, that is.

Then the other thing that we're also taking a look at is inflation data this week, and this is inflation at the producer level. The PPI index is out on Friday, and this will give us an idea of whether ongoing supply chain continues to be restrained and if material shortages are really impacting prices, pushing prices higher.

So the headline PPA is expected to slow to a rise of 0.6% for August. It jumped 1% in July. It rose ahead of estimates, suggesting that there's more inflation pressures and also that those prices-- companies are passing on those prices to consumers.

Excluding food and energy prices, core producer prices is expected to rise by 0.5% for the monthly rate in August. But over the last year, the broadest measure of PPI will likely jump 8.2%. That's an acceleration from 7.8% in July's annual gain, and that would mark the fastest year-over-year jump on record for PPI.

And lastly, Brian, we are going to be getting a look at earnings this week, some earnings. Namely, on Wednesday we're going to watch GameStop's earnings after the bell. You also have Zscaler on Thursday. This is a cloud-based information IT company. And also Friday we've got earnings from Kroger.

But really GameStop will be one that, of course, many will be watching. The stock is at around $202 a share. It's up 25% over the last month. Of course, GameStop being the meme stock of the year, that GameStop frenzy that gained notoriety earlier this year. And on Wednesday we will be watching for a loss of $0.67 a share. This would be an improvement from a loss of $1.40 a share for the same period a year ago.

But GameStop, besides being a meme stock, it also may be a turnaround story, or at least many are hoping that it will be a turnaround story, those that are invested in the stock. You've got Ryan Cohen who has really shaken things up at the company with key executives leaving the company. So we'll see what the update is on Wednesday after the close, Brian.

BRIAN SOZZI: Yeah, potentially good improvement in losses. Sounds like a growth company to me, Ines. But, you know, really I think all eyes are on if GameStop gets added to the S&P 500. And to your point, they're not making any money. They didn't make any money likely in this most recent quarter, and that's probably not going to change anytime soon.

INES FERRE: That's right, and you do need consecutive quarters of profits. So that probably excludes them from getting into the S&P 500 for now, but it is something that people will be watching for. I mean, $202 a share, no Wall Street analysts has their price target at that, so much, much lower than that for shares of GameStop.

BRIAN SOZZI: Yeah, I don't think any analysts even cover the company anymore. But we will check back with you later. Ines Ferre, thanks so much.