This week, we saw a market that continued to be mostly red, as the S&P was down 0.75%, the Russell was down 1.35%, and the Nasdaq was down 2.94%. It seems that money was shifting to so-called safety stocks, as the Dow was up 0.93%. Much of the selloff is caused by the uncertainty around how tariffs will affect companies moving forward. Unfortunately, though, we’re not out of the woods yet, as economically meaningful news seems to develop nearly every day!
One very positive thing that we saw last week was that the Fed’s favorite inflation metric, PCE, met expectations, coming in at 2.5%. Additionally, we saw the second reading of Q4 GDP remain steady at 2.3%. However, we did see some housing metrics miss expectations, with new home sales missing slightly, coming in at 657,000 versus an expected 671,000, and pending home sales decreasing by 4.9%, as opposed to an expected decrease of 1.0%.
This week, we’ve got a pretty busy week ahead of us, starting with ADP employment on Wednesday, followed by a slew of Fed officials speaking throughout the week. Lastly, we’ve got some important employment metrics on Friday, such as the jobs report, unemployment rate, and hourly wages. These last few economic data releases will be very important to pay attention to, as they will give us an idea of how the average consumer is faring at this point in time!
This week, earnings season continues, as we have some of the most influential companies in the world reporting their earnings, like:
03/03 – Okta (OKTA), GitLab (GTLB)
03/04 – CrowdStrike (CRWD), Sea Limited (SE), AutoZone (AZO), Target (TGT), Flutter Entertainment (FLUT), Ross Stores (ROST), On Holding (ONON), Best Buy (BBY), NIO (NIO)
03/05 – Marvell Technology (MRVL), Veeva Systems (VEEV), Zscaler (ZS), MongoDB (MDB), The Campbells Company (CPB)
03/06 – Broadcom (AVGO), Costco Wholesale (COST), JD.com (JD), The Kroger Company (KR), Venture Global (VG), Samsara (IOT), Hewlett Packard Enterprise (HPE), The Cooper Companies (COO), Guidewire Software (GWRE), Burlington Stores (BURL)
This week, it will be most important to pay attention to AVGO, as they will likely provide some very important commentary around the semiconductor market. Since the rise of AI implementation has caused the market to soar, it’s been very important to keep an eye on what the chip makers and designers are seeing, and AVGO is no exception!
It’ll also be important to pay attention to TGT, COST, and KR, as they will give us a great idea of where the consumer is spending their money and if they are feeling the effects of inflation in their day-to-day lives!
Monitoring the market conditions this week.
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