September is historically a down month for the stock market, and last week, as we entered into the first week of September, the market did not disappoint—indices were down across the board, with the Dow down 2.53%, the S&P down 3.91%, the Russell down 5.38%, and the Nasdaq down a massive 5.64%. Many individual stocks were down much more, with NVIDIA down nearly 15% on a week-over-week basis. Unfortunately, that was just the first week of September—we’ve still got a few weeks and some important economic data and earnings releases ahead of us.
We saw almost every key employment indicator come in worse than anticipated last week, including the JOLTS report, ADP employment report, Employment Report, and Initial Jobless Claims. This signaled some weakness in the employment market, which is undoubtedly part of why the market fell precipitously last week. However, somehow, the unemployment rate ticked down month-over-month to 4.2%.
This week, we’ll have some more important economic data releases to keep your eye on, starting with consumer credit on Monday. We’ll then see CPI numbers on Wednesday, followed by PPI on Thursday. Lastly, we’ll see preliminary consumer sentiment numbers on Friday. Together, all of these metrics should give us a good idea of how the consumer is fairing amidst these confusing economic times.
This week, we still have some relatively large companies reporting their earnings, such as:
09/09 – Oracle (ORCL), Rubrik (RBRK)
09/10 – GameStop (GME), Academy Sports and Outdoors (ASO)
09/12 – Adobe (ADBE), Lennar (LEN/LEN.B), The Kroger Company (KR)
It’ll be important to pay attention to what ADBE, LEN, and KR have to say during their earnings calls this week. ADBE has been incredibly volatile this year, as Wall Street is not entirely convinced they are an AI play as of yet. LEN will give some very important commentary around the housing market, and KR will give key insights into where consumers are spending their money.
Monitoring the market conditions this week.
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