What will drive the markets this week?
Stocks rallied last week as a disappointing April jobs report eased fears of rising inflation by indicating that the Feds stimulus measures are unlikely to go anywhere soon. Asset prices have been rising all year and data on manufacturing, services, unemployment claims, and durable goods pointed to a U.S. economy that is still picking up speed as it emerges from the pandemic.
European equities also advanced Friday on the verge of a fresh record, as positive earnings signaled a corporate recovery is underway. The technology sector led the way, travel shares outperformed while miners rallied with base metals.
The earning season comes to a close this week, with almost 800 companies including Disney, Airbnb & Alibaba reporting. Earning results from the S&P 500 companies have so far beaten expectations for both profits and sales by an average of over 20%, according to FactSet. But investors are not overall impressed by how individual stocks have reacted to the positive results.
In the US, Investors will also parse key economic data including reports on inflation, retail sales for April, and consumer sentiment.
Monday, May 10:
- Earnings: Tyson Foods.
- Chinese Consumer Price Index (CPI) (April).
- Chinese Producer Price Index (PPI) (April).
- Japanese Household Spending (March).
- U.K. British Retail Consortium (BRC) Retail Sales Monitor (April).
Tuesday, May 11:
- German ZEW Economic Sentiment Index (May).
- U.S. Energy Information Administration (EIA) Short-Term Energy Outlook.
- Brazilian CPI (April).
- U.S. Job Opening and Labor Turnover Survey (JOLTS) Job Openings (March).
Wednesday, May 12:
- U.K. Manufacturing Production (March).
- U.K. Trade Balance (March).
- German CPI (April).
- French CPI (April).
- Eurozone Industrial Production (March).
- Indian CPI (April).
- U.S. CPI (April)
Thursday, May 13:
- Earnings: Disney, Alibaba Group Holdings, and Airbnb.
- Market Holiday in Switzerland and Norway for Ascension Day, Market Holiday in India for Eid al-Fitr, and Market Holiday in Singapore for Hari Raya Haji.
- U.S. PPI (April).
- Mexican Central Bank Interest Rate Decision.
Friday, May 14:
- European Central Bank (ECB) Monetary Policy Statement.
- U.S. Retail Sales (April).
- U.S. Industrial Production (April).
- U.S. Preliminary University of Michigan Consumer Sentiment and Expectations Survey (May).
- U.S. Retail Inventories Excluding Autos (March).