Last week, the market experienced a low volume melt-up, with the S&P 500 finishing over 1%. The FOMC meeting minutes and Nvidia (NASDAQ:NVDA) earnings influenced volatility. As the market returns to normal trading hours, here are five themes to monitor:
Earnings
Notable earnings this week include Salesforce (NASDAQ:CRM), Dollar Tree (NYSE:DLTR), Hormel Foods (NYSE:HRL), Royal Bank of Canada (NYSE:RY), and Toronto Dominion Bank (NYSE:TD). Salesforce’s guidance and sales numbers can offer insights into the business atmosphere. Positive guidance from Hormel and Dollar Tree may indicate economic turbulence. Canadian banks’ guidance, especially TD, may provide views on future rates.
New Home Sales (Monday, 10 am)
Large purchases like homes indicate economic health. Monitoring New Home Sales and Existing Home Sales reports can offer insights into overall economic health. A beat could lead to market fading on expectations of the Fed maintaining or hiking rates, while a miss might rally the market on hopes of a Fed cut.
Preliminary GDP Numbers (Wednesday)
The Preliminary GDP, forecasted at 5%, can significantly impact the market. A beat may lead to a strong market rally on robust economic growth, while a miss could soften the market on weaker-than-expected economic conditions.
OPEC-JMMC Meetings (Thursday)
OPEC and JMMC meetings on energy, output, and production may impact equities and energy markets. News about tightening supply, especially during the coldest part of the year, could induce fear in equities and drive energy market fluctuations.
Fed Speakers (Throughout the Week, Powell on Friday)
Numerous Fed speakers will discuss interest rates and economic health. Powell’s Friday fireside chat on Economic Mobility could increase market volatility. Fed speeches provide crucial insights into the direction of monetary policy.
Keep a close eye on these themes for a comprehensive view of market dynamics this week.
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