The S&P 500 ($SPX) (SPY) had a phenomenal week last week ending up 4.00%. This week is a lot quieter on both the news and earnings front until the end of the week.
FOMC Meeting Minutes, the Jackson Hole symposium, PMI, and some bigger earnings are released in the back half of the week.
Here are 5 things to watch this week in the Market.
Earnings
Earnings are pretty slim this week with some larger names coming in on Wednesday and Thursday. TJX Holdings (TJX), which manages TJ Max and Homegoods is one of those reporting Wednesday. In addition, Target (TGT), Snowflake (SNOW), Zoom (ZM), and Macy's (M) are all reporting as well. These are mostly retail names and could give some additional clarity into how they are viewing the next year in terms of economic strength. Using company guidance is often a better way to see how the true economy is faring instead of the official numbers because the companies will feel any potential pinch first.
Thursday Toronto Dominion Bank (TD) reports earnings. This is one of the largest banks in Canada and has a fair amount of US market share so watching what they report and how they guide will be interesting. Earnings slow down dramatically after this week with Nvidia (NVDA) next week as one of the final big names.
FOMC Meeting Minutes
On Wednesday the Meeting Minutes from the last FOMC meeting are due out. We already know what they decided to do with rates, this release can cause volatility based off the reasoning behind the decision. This is why it’s possible to get some wild moves as traders, and algorithms, look to derive meaning from everything in the report.
Flash PMI
Both the manufacturing and services Flash PMI are out Thursday morning before the open. These are both indexes to show the level of expansion or contraction in the two sectors. We have been hovering around the 50 level in both so as long as there are no major surprises in the data then it’s possible the release does not bleed over into the market open.
Home Sales
Both Exisitng and New Home Sales are dues Thursday and Friday morning respectively. There has been a lot of talk about housing on the campaign trails so if these show a continually contracting market, it might cause some selling in the equities markets. Conversely if we see that the market starts to loosen, we could see the market catch a Bid.
Jackson Hole/Powell
Thursday and Friday this week is the Jackson Hole Symposium which is a gathering of central bankers in Jackson Hole Wyoming. These are hole day events filled with speakers and talks throughout the day. On Friday morning Powell is speaking at the event about interest rates and the economy. This will undoubtedly cause some volatility in the market as it always does when Powell talks.
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.
