Last week saw a more subdued market compared to much of February. The S&P 500 closed up slightly over 1%, with a slow grind throughout the week. Earnings had only a minor impact on overall market movements, and stocks that missed expectations showed strong rebounds over the following days.
This week, while we still have earnings reports to watch, similar to last week, it’s unlikely that they will significantly move the overall market. Additionally, Powell will be testifying, and there will be some inflation data and Non-Farm Payrolls released on Friday.
Here are five things to keep an eye on in the market this week:
Earnings:
Earnings reports remain in focus, and while many of the major movers have already reported, there are still some key reports to watch this week. Target (NYSE:TGT) reports before the market opens on Tuesday, and like Walmart, their results could provide insights into consumer behavior and the state of the economy.
Broadcom (NASDAQ:AVGO) and Costco (NASDAQ:COST) report on Thursday after the market closes. Broadcom’s report is significant due to its recent acquisition of VMware and its plan to increase prices. Costco’s report will be closely watched for insights into consumer spending and foot traffic.
ISM Service PMI:
On Tuesday, the ISM Services PMI will be released, providing an indicator of industry expansion or contraction. Recent releases have shown expansion but only marginally. A miss or a reading below 50 could lead to selling in the market, while meeting or exceeding expectations could trigger a rally.
JOLTS Job Openings:
Wednesday at 10 am will see the release of the Job Openings report, which could impact the market’s short-term volatility. Job openings are a leading economic indicator, and any significant changes could provide clues about the health of the economy.
Powell Testimony:
Federal Reserve Chair Jerome Powell will testify at the Semi-Annual Monetary Policy Report in the House on Wednesday and Thursday at 10 am Eastern. While his testimony may not contain any groundbreaking revelations, his comments on the economy and interest rate plans could influence market volatility.
Non-Farm Payroll:
Friday’s release of the Non-Farm Employment Change, or Non-Farm Payrolls, at 8:30 am is a key indicator of workforce health. The expected number is 190,000 jobs added, but recent months have seen significant beats. Any revisions to previous months’ numbers could also impact market sentiment.
Overall, this week is expected to be eventful, with these key events likely to shape market movements and investor sentiment.
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