What will drive the markets this week?
On Friday, the S&P 500 closed with gains as a surge in unemployment numbers solidified expectations of a halt in interest rate increases for the month. Concurrently, shares of streaming companies took a hit due to a rate dispute between Disney and Charter Communications.
Walt Disney saw a decline of 2.4%, while Charter Communications dropped 3.6%. This drop followed a heated exchange between the two companies regarding an unresolved distribution agreement. Several channels, including ESPN, went dark on Thursday for Charter’s Spectrum cable service customers. The Nasdaq experienced a marginal decline of 0.02%, settling at 14,031.82 points. In contrast, the Dow Jones Industrial Average (.DJI) recorded a 0.33% increase, reaching 34,837.71 points.
In Europe, stock markets remained relatively stable on Friday. A dip in luxury goods companies and automakers’ stocks offset gains observed in commodity-related sectors. Notably, Danish pharmaceutical firm Novo Nordisk claimed the title of Europe’s most valuable publicly listed company, surpassing LVMH.
Across the Asia-Pacific region, most markets witnessed an upward trajectory. China’s factory activity expanded in August, and the central bank announced a reduction in reserve requirements to stimulate the economy.
This week, U.S. equity markets will be closed on Monday due to the Labor Day holiday. With a substantial portion of S&P 500 companies already having reported their earnings, the upcoming week is expected to be relatively calm.
For market observers, notable events to watch for include the release of PMI surveys by S&P Global and the Institute for Supply Management (ISM), the latest edition of the Fed’s Beige Book, and an inflation report from China. Additionally, earnings reports from Gamestop, American Eagle Outfitters, and the supermarket chain Kroger are on the agenda.
Events expected to move the markets this week
Monday, September 4
- U.S. markets closed for Labor Day holiday
- Trip.com (TCOM) reports earnings
- China Caixin Services PMI (Aug)
Tuesday, September 5
- Zscaler Inc. (ZS), GitLab Inc. (GTLB), HealthEquity Inc. (HQY), and Asana Inc. (ASAN) report earnings
- IBD/TIPP Economic Optimism Index (Sep)
- Factory Orders (Jul)
Wednesday, September 6
- UiPath Inc. (PATH), Core & Main Inc. (CNM), Gamestop Corp. (GME), Sprinklr Inc. (CXM) and American Eagle Outfitters (AEO) report earnings
- JPMorgan Global Composite PMI (Aug)
- S&P Global U.S. Services PMI (Aug)
- ISM Services PMI (Aug)
- U.S. Trade Balance (Jul)
- China Trade Balance (Aug)
- Fed Beige Book
Thursday, September 7
- The Toro Company (TTC), DocuSign Inc. (DOCU), Guidewire Software Inc. (GWRE), Smartsheet Inc. (SMAR), Braze Inc. (BRZE), and John Wiley & Sons Inc. (WLY) report earnings
Friday, September 8
- Kroger Company (KR) reports earnings
- Manheim Consulting Used Vehicle Price Index (Aug)
- Wholesale Inventories (Jul)
- Japan Gross Domestic Product (GDP) - Final Reading (Q2 2023)
Saturday, September 9
- China Consumer Price Index (CPI) (Aug)