What will drive the markets this week?
The S&P 500 experienced a relatively stable session on Friday, closing with minimal changes. However, it marked its seventh consecutive week of gains, constituting its lengthiest winning streak since 2017, following the Federal Reserve’s recent dovish shift. Simultaneously, the Dow Jones industrial average achieved a record-high close for the third consecutive session.
Over the week, the Dow demonstrated a 2.9% increase, the Nasdaq climbed by 2.8%, and the S&P 500 added 2.5%.
European shares saw a marginal rise on the concluding day of a week characterized by significant central bank policy decisions. The U.S. Federal Reserve’s inclination towards potential interest rate cuts set the tone for market expectations.
Emerging market stocks saw a 0.72% rise, while MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.03% higher, with Japan’s Nikkei gaining 0.87%.
Stock markets, having experienced seven consecutive weeks of gains, will operate on a regular schedule this week in anticipation of the upcoming two holiday-shortened week
This week, attention will also be directed towards the housing market, as various indicators, including homebuilder confidence, housing starts, building permits, existing home sales, and new home sales, are set to be released. Additionally, the final Michigan Consumer Sentiment Index for December will provide insights into Americans’ perceptions of the economy.
Earnings reports from notable companies, such as Nike Inc., Accenture PLC, FedEx Corp., Micron Technology Inc., and CarMax Inc., are expected this week, contributing to market dynamics and investor sentiment.
Events expected to move the markets this week
Monday, Dec. 18
- Heico Corp. (HEI) reports earnings
- Homebuilder confidence index (December)
Tuesday, Dec. 19
- Accenture (ACN) and FedEx (FDX) report earnings
- Housing starts (November)
- Building permits (November)
Wednesday, Dec. 20
- Micron Technology (MU) and General Mills Inc. (GIS) report earnings
- U.S. current account (Third quarter)
- Existing home sales (November)
Thursday, Dec. 21
- Nike (NKE), Cintas Corp. (CTAS), Paychex Inc. (PAYX), CarMax (KMX), and Carnival Corp. (CCL) report earnings
- Initial jobless claims (Week of Dec. 16)
- Gross domestic product revision (Third quarter)
- Philadelphia Fed manufacturing survey (December)
- U.S. leading economic indicators (November)
Friday, Dec. 22
- Personal Consumption Expenditures (PCE) index (November)
- Durable goods orders (November)
- S&P flash U.S. services Purchasing Managers Index (PMI) (December)
- S&P flash U.S. manufacturing PMI (December)
- New home sales (November)
- Consumer sentiment - final (December)