Last week, we saw China take their economic problems head-on by releasing one of the largest stimulus packages we’ve ever seen. This stimulus package is designed to put money in the hands of both people and businesses alike. This, of course, sent Chinese/Hong Kong-listed, luxury, and gaming stocks soaring, with stocks like Estee Lauder and Alibaba up nearly 20% and stocks like Wynn up over 20% on a week-over-week basis. This huge development is bound to change the landscape for countless stocks, as Asia has been seen as a weak market for consumers for a couple of years at this point.
Last week, quite possibly the most prominent result that we saw in the economic data releases was the fact that consumer confidence missed by a rather large margin. The previous reading was 103.3, and analysts were expecting this month’s reading to come in around 104. However, it actually came in around 98.7, showing that the consumer is really hurting and that these rate cuts that we’re seeing are bound to help. Aside from this huge miss, all of the other economic data releases came roughly in line with expectations.
This week certainly won’t be one to disappoint either. We kick things off on Monday with a speech from none other than Jerome Powell, followed by the JOLTS report and speeches from several other Fed officials on Tuesday. We then get ADP employment data on Wednesday, and we cap things off with nonfarm payrolls and the unemployment rate on Friday. One thing is for certain this week, and that is the Fed will be paying attention to where these numbers come in, and they will certainly be taken into consideration in their next meeting!
This week, we have some important earnings releases, such as:
09/30 – Carnival Corporation (CCL/CUK)
10/01 – Nike (NKE), Paychex (PAYX), McCormick & Company (MKC/MKC.V)
10/01 – ConAgra Brands (CAG), Levi Strauss (LEVI)
10/01 – Constellation Brands (STZ), VinFast Auto (VFS)
This week, everyone will be paying attention to CCL and NKE. Both of these companies will give us a good idea of where consumers are spending their money and if we should expect any softening demand in the fourth quarter. They’re going to set the stage in a huge way for the Q3 earnings releases we’ll be seeing in a couple of weeks.
Monitoring the market conditions this week.
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