The previous week brought about significant tradable fluctuations in the overall market. The S&P 500 ($SPX) (SPY) closed the week with a 0.83% gain following robust preliminary GDP figures, which stood at 5.2%. Concurrently, there was news of several companies initiating another round of layoffs under the guise of corporate “restructuring.”
As we approach the current week, there are additional earnings announcements on the horizon, although the pace of these releases has notably slowed. Moreover, a plethora of economic data is slated for release, along with noteworthy developments in the energy sector.
Here are five crucial elements to monitor in the market this week.
Earnings reports continue to be part of the trading cycle this week, albeit with a diminished number of market-moving entities left to report. Notably, AutoZone (NYSE:AZO) will report on Tuesday, providing insights into the outlook for the automotive markets. Wednesday will see Gamestop (NYSE:GME) reporting after market close, potentially impacting the market due to its fervent following. Finally, Dollar General (NYSE:DG) reports on Thursday before the market opens, potentially offering indicators of economic strength or weakness.
JOLTS Job Openings
The Job Openings and Labor Turnover Survey (JOLTS) report, a leading indicator of economic health, is eagerly awaited. An increase in job openings could be viewed positively by the market, signaling a potential easing of the tight job market. Conversely, a miss in this report could be interpreted negatively, suggesting that employment remains a challenge and the Federal Reserve may need to take further action.
Crude Oil Inventories
Wednesday at 10 am Eastern will see the release of crude oil inventories. While not a direct market mover, it remains a significant metric to monitor. Following OPEC+’s decision to reduce output, a draw in inventories could lead to an uptick in oil prices, potentially translating into higher gas and commodity prices heading into the holiday season.
Unemployment claims data, set to be released on Thursday morning, holds substantial importance. The possibility of revisions higher in subsequent months, as seen in recent releases, could signal a more challenging economic situation than initially anticipated. A substantial miss in this report might prompt the market to rally on positive economic news, akin to the reaction to the last GDP report.
On Friday at 8:30 Eastern time, key employment statistics, including Average Hourly Earnings, Non-Farm Payroll, and the Unemployment Rate, will be unveiled. A stronger-than-expected performance in these indicators may fuel a market rally, while a miss, particularly in the unemployment rate, could lead to a market decline based on perceived economic weakness.
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