This past week, we witnessed yet another week of unprecedented green in the markets, with the Nasdaq up 0.48% and the S&P up 0.96%. The Dow is up 2.56%, and the Russell is up a whopping 3.77% on a week-over-week basis. The strength we saw in the market was due to a combination of better-than-expected earnings as well as some very surprising economic data that we’ll talk about in the next section.
Many didn’t think it was possible that the first revision of Q3 GDP would increase from the initial rate of 4.9%. Analyst consensus was that the first revision would increase slightly and come in at 5.0%. However, the actual reading for the first revision of Q3 GDP came in at a massive 5.2%, which sent the market surging upward on Wednesday. Additionally, on Thursday, month-over-month PCE data came in at 0.0%, which is a great sign for those hoping that the Fed stops raising interest rates soon.
This week will continue to be exciting in terms of macroeconomic data releases. Things start off on Tuesday with CPI, which will likely meet or exceed analysts’ expectations if PCE is any indicator. However, Wednesday is the day everyone is waiting for. First, we get to see PPI data for November at 8:30 AM. But the moment everyone is waiting for comes at 2:00 PM, when the Fed releases its latest interest-rate decision. This is bound to move markets one way or another, depending on what the Fed officials choose to do.
Although earnings season is slowing down, we still have some rather important companies reporting their earnings this week, such as:
12/04 – GitLab Inc. (GTLB)
12/05 – AutoZone, Inc. (AZO), Ferguson PLC (FERG), MongoDB, Inc. (MDB), NIO Inc. (NIO), J.M. Smucker Company (SJM), Toll Brothers, Inc. (TOL), Core & Main, Inc. (CNM)
12/06 – Brown Forman Corporation (BF.A/BF.B), Veeva Systems Inc. (VEEV), Campbell Soup Company (CPB), Chewy, Inc. (CHWY), Braze, Inc. (BRZE)
12/07 – Broadcom Inc. (AVGO), Lululemon Athletica (LULU), Dollar General Corporation (DG), The Cooper Companies (COO), DocuSign (DOCU), Vail Resorts (MTN)
All eyes will be on LULU this week, as they report their Q3 earnings, and hopefully give us an idea of how their Black Friday went. If other retailers are any indication of how LULU did, chances are they did quite well!
It’ll also be important to pay attention to TOL, as they are one of the largest homebuilders in the US, and they are also one of the few homebuilders that operate in the luxury home market. TOL’s earnings will give us a good idea of how the luxury home market is fairing, as well as how management sees 2024.
Monitoring the market conditions this week.
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