What will drive the markets this week?
U.S. equities concluded a tumultuous trading session with gains on Friday, as investors absorbed remarks from Federal Reserve Chair Jerome Powell. Powell indicated that the U.S. central bank might need to further raise interest rates in order to maintain control over inflation.
In Europe, initial gains were relinquished, resulting in a flat close. The euro, at one juncture, reached its lowest point since mid-June due to expectations that the European Central Bank might temporarily halt its tightening measures next month. By day’s end, the euro had recovered some ground, ending down 0.12% at $1.07965. Asian shares exhibited lackluster performance overnight, with MSCI’s comprehensive Asia-Pacific share index falling 1.2%.
In the upcoming week, significant updates are anticipated concerning inflation, employment trends, and housing expenses within the United States. Moreover, various companies, including Pinduoduo, Hewlett Packard, Best Buy, Salesforce, Broadcom, UBS, Dell Technologies, and Lululemon Athletica, are slated to make noteworthy corporate announcements.
The Job Openings and Labor Turnover Survey (JOLTS) report for July is set to be unveiled on Tuesday. Subsequently, Wednesday will witness the release of ADP’s National Employment Report. The week will culminate with the Labor Department disclosing its nonfarm payrolls report for August on Friday.
Turning to the housing sector, the Case-Shiller National Home Price Index for June is scheduled to be published on Tuesday. Simultaneously, Thursday will mark the publication of the Bureau of Economic Analysis (BEA) Personal Consumption Expenditures (PCE) Price Index for July. This particular index carries special significance for the Federal Reserve, serving as their preferred gauge for assessing inflation trends.
Events expected to move the markets this week
Monday, August 28
- Heico Corporation (HEI) reports earnings
- Dallas Fed Manufacturing Index (Aug)
Tuesday, August 29
- Pinduoduo (PDD), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), HP Inc. (HPQ), Nio Inc. (NIO), Best Buy (BBY), J.M. Smucker Company (SJM), Catalent Inc. (CTLT), and Donaldson Company (DCI) report earnings
- S&P Case-Shiller National Home Price Index (Jun)
- FHFA House Price Index (Jun)
- Job Openings and Labor Turnover Survey (JOLTS) (Jul)
- Conference Board Consumer Confidence Index (Aug)
- Dallas Fed Services Index (Aug)
Wednesday, August 30
- Salesforce (CRM), CrowdStrike Holdings (CRWD), Brown Forman Corporation (BF.A, BF.B), Veeva Systems Inc. (VEEV), The Cooper Companies (COO), Chewy Inc. (CHWY), Okta Inc. (OKTA), and Five Below (FIVE) report earnings
- ADP National Employment Report (Aug)
- U.S. Gross Domestic Product - Second Estimate (Q2 2023)
- Real Consumer Spending (Q2 2023)
- Corporate Profits (Q2 2023)
- Pending Home Sales (Jul)
- U.S. Goods Trade Balance (Jul)
- Retail Inventories Excluding Autos (Jul)
Thursday, August 31
- Broadcom (AVGO), UBS (UBS), Vmware (VMW), Lululemon Athletica (LULU), Dell Technologies (DELL), Dollar General (DG), KE Holdings Inc. (BEKE), Hormel Foods Corp. (HRL), Campbell Soup Company (CPB), and Ciena Corporation (CIEN) report earnings
- Challenger, Gray & Christmas Job Cuts (Aug)
- Personal Income and Spending (Jul)
- Personal Consumption Expenditures (PCE) Price Index (Jul)
- Chicago Purchasing Managers’ Index (PMI) (Aug)
Friday, September 1
- Nonfarm Payrolls (Aug)
- S&P Global Manufacturing PMI - Final Reading (Aug)
- ISM Manufacturing PMI (Aug)
- Construction Spending (Jul)