Following a huge market decline over the course of the previous week, we saw quite a rebound over the past week. This reversal led the Dow up 3.47%, the Russell up 3.63%, the S&P up 4.23%, and the Nasdaq up a whopping 5.51%. This was largely due to some better than-expected earnings, economic data, and a reduction in fear from the unwinding of the “Yen Carry” trade.
Last week, we saw some key economic indicators come in quite a bit better than expected, with PPI, CPI, and retail sales all beating analyst expectations. This was part of what fueled the fire that was last week’s market rally. However, on the flip side, it is important to note that housing market indicators are not doing very well. Homebuilder confidence continues to dive, and housing starts and building permits continue to miss expectations. It’s also important to mention that preliminary consumer sentiment for the month of August is still quite low, coming in at a measly 67.8.
This week will be relatively quiet as we prepare for an incredibly busy week in terms of economic data releases next week. We’ll see the minutes of the July FOMC meeting on Wednesday, followed by initial jobless claims and existing home sales on Thursday. We’ll then end the week with new home sales and a speech from Jerome Powell at the Jackson Hole retreat on Friday.
This week, earnings season rages on, as key companies continue to report their earnings, such as:
08/19 – Palo Alto Networks (PANW), Estee Lauder Companies (EL)
08/20 – Lowe’s Companies (LOW), Medtronic (MDT), Toll Brothers (TOL)
08/21 – TJX Companies (TJX), Analog Devices (ADI), Synopsys (SNPS), Target (TGT), Snowflake (SNOW), Agilent Technologies (A), Zoom Video Communications (ZM)
08/22 – Intuit (INTU), Toronto Dominion Bank (TD), Workday (WDAY), NetEase (NTES), Ross Stores (ROST), Baidu (BIDU), Dollar Tree (DLTR), Burlington Stores (BURL), Viking Holdings (VIK)
08/23 – Ubiquiti (UI)
This week, all eyes will be on PANW, SNOW, and INTU, as some of the smaller tech companies report their earnings. It’ll be particularly important to pay attention to what is said on the PANW call, as they’ll likely comment on the recent CrowdStrike outage and how that has effected their business.
It’ll also be important to pay attention to what TOL has to say this week, as they are the premier luxury home builder in the US. Their commentary will give us a good idea where the top end of the real estate market is headed, which will likely be indicative of where the rest of the market is going.
Monitoring the market conditions this week.
Want to stay in the know? Want tips delivered right to your inbox? Simply provide your email address below and you’ll get a high-value newsletter, designed to help you trade stronger.
