Last week, the Jackson Hole Symposium was front and center of investors’ attention. Federal Reserve Chair Jerome Powell's comments suggested the time has come to cut rates, leading to a strong rally in equities. The S&P 500 ($SPX) (SPY) had a strong finish to the week finishing 1.15% higher on Friday which was good for a 1.45% weekly gain.
Economic concerns persisted as Core Durable Goods Orders came in lower than expected, signaling potential weaknesses in business investment.
Technology stocks showed resilience, driven by strong earnings from several major companies, while sectors like energy and materials faced pressure due to falling commodity prices.
The market also reacted to housing data, with the S&P/Case-Shiller Home Price Index indicating continued softness in the real estate market.
Next week we have some important tech earnings, GDP and Consumer Confidence numbers to keep an eye on.
Here are 5 things to watch this week in the Market.
Earnings
Tech earnings will be a major focus this week with big names companies such as Nvidia (NVDA), Crowdstrike (CRWD), Marvell Technologies (MRVL) and Salesforce (CRM) all due to report.
These announcements and forward guidance should give a good indication of market sentiment for the next few weeks.
GDP
The U.S. Bureau of Economic Analysis (BEA) will release its second estimate of the GDP for Q2 2024. This release will include updated data on economic growth, potentially revising the initial estimate based on more complete data. This revision is closely watched as it can provide a clearer picture of the economy's performance during the quarter and influence expectations for future Federal Reserve actions.
Consumer Confidence
Tuesday has Consumer Confidence at 10 am Eastern. This index measures consumer sentiment and could offer clues about future consumer spending, which is a significant driver of economic growth. If consumer confidence falls, it might suggest economic weakness, confirming the Fed’s stance of cutting rates in September.
Durable Goods Orders
Due out at 8:30am on Monday, this data will shed light on business investment trends and is a key indicator of economic health. A stronger-than-expected number might indicate a resilient economy, which could affect expectations for future Fed actions.
Core PCE
Finally, on Friday, the Fed’s official measurement tool for inflation is due out, core PCE. Given all of the news surrounding inflation lately, this has the potential to move the market and set the tone for the day and potentially the next few weeks until the next FOMC meeting.
If PCE comes in hotter than expected we could be in for a wild ride proving inflation is not yet tamed. If we come it at expectation or cooler then we could see the market really rally potentially into next week on potential for positive rate news.
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.
