This past week, we saw yet another week with a tremendous amount of red in the markets, with the Dow down 2.48%, the Nasdaq down 2.73%, the S&P down 2.86%, and the Russell down 3.36% on a week-over-week basis. Although there were a handful of reasons for the market to be down this week, the main contributing factor was the fact that companies are continuing to issue soft guidance, leading to tremendous sell-offs in their stock price. Additionally, we saw the unemployment rate tick up slightly, and both the US jobs report and the ADP employment report come in quite a bit lower than anticipated, leading to overall uncertainty in the markets.
Last week, we saw some upsets in terms of economic data, starting with the continued issuance of soft guidance from very key companies in virtually every sector. Additionally, we saw the ADP employment report come in with 77,000 new jobs added in the month of February compared to an expected 148,000. We also saw the unemployment rate tick up from 4.0% to 4.1%, paired with the US jobs report stating that there were 151,000 new jobs added in February, compared to an anticipated 170,000.
This week will be incredibly important in terms of economic data releases. We kick things off on Tuesday, with the JOLTS report, followed by CPI data on Wednesday, PPI data on Thursday , and preliminary consumer sentiment on Friday. All of these data points will give us a great idea of where the average consumer is financially, and where they should expect to be over the coming weeks/months.
This week, earnings season continues, as we have some of the most influential companies in the world reporting their earnings, like:
03/09 – Oracle (ORCL), BioNTech (BNTX)
03/10 – Ferguson Enterprises (FERG), Viking Holdings (VIK), Dick’s Sporting Goods (DKS), Caseys General Stores (CASY)
03/11 – Adobe (ADBE), Crown Castle (CCI), Lennar (LEN/LEN.B), Williams-Sonoma (WSM), UiPath PATH)
03/12 – Dollar General (DG), Ulta Beauty (ULTA), DocuSign (DOCU), Rubrik (RBRK), KT Corporation KT)
03/14 – Li Auto (LI), WeRide (WRD)
All eyes will be on ADBE and ORCL this week, as these mid-sized tech companies report the latest happenings in their companies. It will be important to pay attention to what they have to say on the B2B market, and where they see it going over the next couple of months.
It’ll also be important to pay attention to the DKS, LEN, WSM, DG, and ULTA calls, as these companies are consumer facing, and will give us a good idea of where we should expect the economy to go over the course of the next couple of months!
Monitoring the market conditions this week.
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