Last week was an interesting week from a news perspective, both CPI and PPI came in hotter than expected. This did not stop the market from continuing its upward trajectory though as the S&P 500 ($SPX) (SPY) closed the week up over 1.00%.
Additionally, Earnings started with some of the larger banks, so this will be something to watch in the coming weeks.
This week in addition to earnings there is a bank holiday as well as a few notable news releases.
Here are 5 things to watch this week in the Market.
Columbus Day
Monday is Columbus day in the US and this is mostly a bank holiday. Most markets are open on this day except for the Bond Markets. Still given it’s a bank holiday it’s possible there is lighter than usual volume.
Earnings
Earnings are in full swing this week starting on Tuesday. Goldman Sachs (GS), Bank of America (BAC), American Express (AXP), and Morgan Stanley (MS) are all reporting throughout the week. These companies have large consumer bases and watching what their guidance is for the coming months and years could be important to you as an investor. If they all guide lower and see higher credit issues it could be a sign of issues in the underlying economy.
Netflix (NFLX) and Taiwan Semiconductor (TSM) both also report on Thursday. Both of these names have enough power behind them to move the market as a whole, so watching how they report and guide could be a great way to gauge short-term market sentiment.
Retail Sales
Retail Sales and Core Retail Sales are due Thursday this week and are two of the largest releases this week. Given the increase in CPI data that was released last week, this could be another important release for the economy as a whole. If we come in higher than expected this could be seen as a positive by the market as it would mean that the general population is adjusting to prices well. If we come in lower than expected this could be seen as a negative by the markets because it would mean even with higher prices, the consumer is buying less.
Building Permits and Housing Starts
Finally, on Friday, there are Building permits, and Housing Starts at 8:30 a.m. EST. This has a few potential ramifications. The first is the obvious: housing inventory. There still appears to be a fundamental shortage compared to the number of people looking to buy homes. The second is the effect of rates on the housing sector as a whole. A strong release on both shows that there is still movement in the renovation and construction of new homes. This is positive for the economy as a whole and the market may react to it appropriately.
Fed Speakers
The last thing to watch out for this week is FOMC speakers. They appear to be speaking every day this week except for Wednesday and that means that there could be some swift movement when they are talking. These speeches are peppered in throughout the day so be sure to keep an eye on the calendar this week if you are trading something short-term.
Best of luck this week and don’t forget to check out my daily options article.
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
