What will drive the markets this week?
On the closing day of the week, MSCI’s global stock index notched its fifth consecutive weekly gain. Simultaneously, U.S. Treasury yields and the dollar both recorded declines. The Dow Jones Industrial Average (.DJI) surged by 294.61 points, equivalent to 0.82%, closing at 36,245.5. The S&P 500 (.SPX) witnessed a gain of 26.83 points, or 0.59%, reaching a closure at 4,594.63. Meanwhile, the Nasdaq Composite (.IXIC) added 78.81 points, reflecting a 0.55% increase and concluding at 14,305.03.
According to the Institute for Supply Management (ISM), the manufacturing Purchasing Managers’ Index (PMI) remained stagnant at 46.7 in the past month. This marks the 13th consecutive month of contraction in manufacturing, a trend not observed since August 2000 to January 2002.
In the Asia-Pacific region, markets opened lower on Friday, deviating from the positive trend on Wall Street. Investors scrutinized mixed economic data from the region, with a particular focus on China’s Caixin Manufacturing Purchasing Managers’ Index for November. The unexpected reading of 50.7 indicated sector expansion, surpassing the Reuters poll forecast of 49.8 and an improvement from October’s 49.5.
This week holds significant insights into the labor market, featuring key reports scheduled throughout the week. Tuesday will provide updates on job openings, followed by the private payroll report from ADP on Wednesday, weekly initial jobless claims on Thursday, and the U.S. unemployment report on Friday.
Investors should also anticipate various economic indicators, including the latest factory order figures, revisions to U.S. third-quarter productivity, October U.S. trade deficit data, and wholesale inventories. Additionally, consumer-related data will be in focus, with the Federal Reserve’s monthly report on consumer credit and preliminary results for the Michigan Consumer Sentiment Index for December.
A notable event on Wednesday will be the launch of Advanced Micro Devices (AMD)’s new MI300 data center GPU chip. This release is part of a series of advanced chip designs tailored specifically for processing data in artificial intelligence (AI) applications. Throughout the week, other tech companies, such as Microsoft (MSFT) and Cisco Systems (CSCO), will host events, including their annual shareholder meetings.
Events expected to move the markets this week
Monday, Dec. 4
- SAIC (SAIC) and Gitlab (GTLB) release earnings
- MGM Resorts International (MGM) BetMGM business update event
- Factory orders (October)
Tuesday, Dec. 5
- AutoZone (AZO) releases earnings
- Johnson & Johnson (JNJ) enterprise business review event
- ISM services (November)
- Job openings (October)
Wednesday, Dec. 6
- Chewy (CHWY), GameStop (GME), and C3 (AI) release earnings
- Cisco Systems (CSCO) annual shareholder meeting
- Advanced Micro Devices (AMD) “Advancing AI” MI300 data center GPU chip launch
- ADP employment (November)
- U.S. productivity (3Q Revisions)
- U.S. trade deficit (October)
Thursday, Dec. 7
- Broadcom (AVGO), Lululemon (LULU), and Dollar General (DG) release earnings
- Microsoft (MSFT) annual shareholder meeting
- Domino’s (DPZ) investor day
- Initial jobless claims (week ending Dec. 2)
- Wholesale inventories (October)
- Consumer credit (October)
Friday, Dec. 8
- Consumer sentiment (December preliminary)
- U.S. employment report (November)