Last Week’s Market Activity
The prior week’s rally was short-lived as cracks began to reappear in investor confidence, leading all major indices down 0%-1% week-over-week. Although we saw some great earnings out of retailers, like Walmart, Lowe’s, and Home Depot, the market still sold off. Retail investors were a large contributor in this sell-off; according to JP Morgan, retail was responsible for selling $3.1 Billion worth of stock throughout the trading week.
Last week, we didn’t see much in terms of economic data releases, however, there were a couple of interesting data points. To start, most housing metrics came in slightly above expectations, which is shocking, considering the market we’re currently in.
Additionally, the Philadelphia Fed manufacturing index, a survey of manufacturers that indicates the change in their business activity each month, came in staggeringly low at -19.4. This is the lowest we’ve seen the index since May 2020! Last month, the index was at -8.7, and analysts were expecting it to be -6.0 for the month of November, so -19.4 was a considerable miss. Such a steep slowdown in manufacturing is definitely a cause for concern.
Upcoming Market Catalysts
Since we’ve got a short holiday week on the horizon, there isn’t much activity this week in terms of economic data releases. The most notable release we will see is the FOMC meeting minutes. This should give us a better idea of what the Fed will be looking to do with the federal funds rate in December.
Notable Earnings Releases
As we enter a holiday week, and the end of the Q3 earnings season, we still have a few companies of note reporting earnings this week:
11/21 – Dell Technologies (DELL), Zoom Video Communications (ZM), J.M. Smucker Company (SJM)
11/22 – Medtronic plc (MDT), Autodesk (ADSK), Dollar Tree (DLTR), Baidu (BIDU), Best Buy (BBY)
11/23 – Deere & Company (DE)
11/25 – Pinduoduo (PDD)
It will be interesting to hear what retailers like DLTR and BBY have to say about sales and the current state of the economy. Analysts will also be looking to BBY for some guidance on the coming holiday shopping season.
Chinese companies like BIDU and PDD will also be important to pay attention to, as they will provide insight into China’s economy, which has been shaky at best recently.
Lastly, as one of the largest players in the space, DE will provide some valuable commentary on the construction market.
⚡ Watchlist ⚡
Monitoring the market conditions this week.