Last week, we continued to see large amounts of red in the market, as the Dow and S&P were down 1.22% and 0.8%, respectively, the Nasdaq was roughly flat, and the Russell was surprisingly up 0.29% on a week-over-week basis. The continued red in the market was driven by some worse-than-expected economic data that came out this past week. We’re not out of the woods yet, though; there will be some important economic data releases in the coming weeks, and the Q3 earnings season will begin soon!
As we mentioned in the previous section, the red that we’ve seen in the markets this past week was caused by some worse-than-expected data readings. To start things off, new home sales came in at 675,000, versus an expected 695,000 and a previous reading of 739,000. We also saw pending home sales fall, coming in at -7.1%, versus an expected -1% and a previous reading of 0.9%. Lastly, although the misses in consumer confidence and jobless claims weren’t as bad as the aforementioned metrics, it’s important to note that there were some upsets in these categories as well!
This week, we have some rather important consumer-related data coming out. On Tuesday, we start things off with the job openings (JOLTS) report. Depending on where the number falls, there could be very serious market implications. We’ll also get ADP employment data on Wednesday, as well as unemployment and hourly wage data on Friday. It will be important to pay attention to all of these metrics, as they are all key metrics that the Fed factors into their interest rate decisions!
This week is another slow week in terms of earnings releases. However, there are still some rather important companies reporting their Q3 earnings, such as:
10/03 – McCormick & Company Incorporated (MKC.V/MKC)
10/05 – Constellation Brands Inc. (STZ), Lamb Weston Holdings (LW), ConAgra Brands, Inc. (CAG), Levi Strauss & Co. (LEVI)
All of the aforementioned companies are key indicators of consumer spending, as all of them are tied to some form of consumer non-discretionary company. This means all of these companies will be able to provide great commentary on the state of the consumer, as well as where they are spending their money.
Monitoring the market conditions this week.
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