After the prior week, it appeared that the market was beginning to sell off; however, it corrected course this week, with the Dow up 1.83%, the S&P up 3.03%, the Russell up 3.95%, and the Nasdaq up a whopping 4.67%. This was mainly due to some better-than-expected inflation data as well as some better-than-expected earnings. However, we’re not out of the water yet. This week will be quite interesting, as we have some incredibly important economic data and decisions being made!
Last week, we saw most economic indicators come in line with expectations. However, we did see a slight beat on year-over-year CPI, which was part of what fueled the market’s optimism. Additionally, consumer sentiment came in a touch better than expected, which is great since it’s still at incredibly low levels. However, the real fun comes this week as the Fed shakes things up!
This week, all eyes will be on the FOMC interest rate decision on Wednesday. Some are expecting a 50 bps cut, whereas most are expecting just a 25 bps cut. The market has the potential to move in a huge way depending on where their decision lands. In addition to the interest rate decision, it’ll be important to pay attention to retail sales numbers on Tuesday, housing starts and building permits on Wednesday, and existing home sales on Thursday.
This week, we still have some relatively large companies reporting their earnings, such as:
09/17 – Ferguson Enterprises (FERG)
09/18 – General Mills (GIS), Steelcase (SCS)
09/19 – FedEx (FDX), Lennar (LEN,LEN.B), Darden Restaurants (DRI), FactSet Research Systems (FDS)
It’ll be particularly important to pay attention to GIS, FDX, LEN, and DRI this week, as they will give us a great idea of how and where consumers are spending their money. In one week, we’ll get a snapshot of how consumers are interacting with the grocery, restaurant, housing, and e-commerce markets, which will be huge!
Monitoring the market conditions this week.
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