Last week, we saw a tremendous amount of red in the markets, as the S&P, Nasdaq, and Dow were down 1.08%, 1.28%, and 1.94%, respectively. However, the Russell was up slightly, at just 0.28%. This overarching downward trend is due to the fact that inflation is beginning to spike back up, coupled with the fact that the job market continues to be very strong. Unfortunately, we’re not out of the woods yet, as we have yet another big week in terms of economic data releases and earnings reports.
Last week, we saw the job market continue to be incredibly strong, with both ADP employment and nonfarm payroll metrics significantly beating expectations, with ADP employment coming in at 184,000 versus an expected 155,000 and nonfarm payrolls coming in at 202,000 compared to an expected 200,000. Additionally, we also saw health insurance companies like UNH and HUM take huge hits to their stock prices when Medicare Advantage plan premium increases came in considerably lower than expected.
Things heat back up this week, starting with CPI data on Wednesday, followed by PPI on Thursday. These key inflation metrics will give us an idea of how the Fed will move going forward. They will also let us know if we should brace for another 2022-style wave of inflation. Regardless of the numbers in the inflation reports, the market is bound to move big in one way or another!
This week, the Q1 2024 earnings season kicks off, with some of the largest financial institutions reporting their earnings, such as:
04/10 – Delta Air Lines (DAL)
04/11 – Constellation Brands (STZ), Fastenal Company (FAST), CarMax (KMX)
04/12 – J P Morgan Chase (JPM), Wells Fargo & Company (WFC), Progressive Corporation (PGR), BlackRock (BLK), Citigroup (C), State Street Corporation (STT)
This week, all eyes will be on the companies reporting on Friday, which are some of the largest financial and insurance companies in the world. These companies will help give us an idea of how the average consumer is faring amidst a backdrop of continuing inflation, which we just can’t seem to shake.
It’ll also be important to pay attention to what DAL has to say, as their commentary will likely move the broader travel market in a huge way.
Monitoring the market conditions this week.
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