Tough week for the overall market last week with the S&P 500 ($SPX) (SPY) closing down over 2% and other popular names like Nvidia (NVDA) and Tesla (TSLA) down over 3% and under 1% respectively.
This was not helped by a warmer-than-expected PPI number, and then Powell and several other Fed heads came out to say there was no rush to continue rate cuts until the economy showed it was necessary.
This week is fairly quiet on the news front with only a few major releases due out, but earnings are back into the limelight this week with Lowes (LOW), Walmart (WMT), and Nvidia (NVDA) all reporting.
Here are 5 things to watch this week in the Market.
Earnings
Lowes (LOW), Walmart (WMT), and Nvidia (NVDA) are due to report earnings this week. Lowes and Walmart are both set for Tuesday before the market opens and both serve the consumer/retail space. Watching out as their earnings are released could provide some insight into how they see the economy as something to watch over the next year.
Nvidia is due out Wednesday after the close, and this is a very powerful earnings report as it has the potential to sway the entire market. If it's a miss we could see it take the entire market down with it, and if it's a beat we could see it boost everything the next morning. One thing to note about Nvidia earnings is that they had some ties to Super Micro (SMCI) which recently got hit with a class action of accounting manipulation accusation. This could bleed over into Nvidia. On the other hand, AI has been moving at an exponential rate, and with Nvidia being the main producer of machine learning cards, it could have zero impact on them.
G20 Meetings
The G20 meets this week on Monday and Tuesday, and given that this includes almost all of the major central banks around the world it could cause some movement in the market. These meetings are all day and while they are closed to the press there are often impromptu press conferences between meetings. There is also a formal statement at the end of the meeting about policy objectives and what was discussed in the meeting.
FOMC speakers
Much like last week, this week there are FOMC speakers sprinkled throughout the week. While they are unlikely to have a lasting impact on the market, their comments can cause some volatility around the time of the speeches.
Unemployment Claims
Thursday we have unemployment claims out before the market opens. The release almost always causes some volatility, but this could be especially true this week after a news report resurfaced about potential exaggerations in the actual number of open Jobs.
Flash PMI
Last up this week are the Flash Manufacturing and Services PMI numbers. These are important because they show industry expansion or contraction in both the manufacturing and services industries. Manufacturing has been below 50 for the past several months showing a small industry contraction while services have been slightly above 50 showing slight expansion. These releases may not do much for the market, but they are important to watch for clues about the underlying health of the economy.
Best of luck this week and don’t forget to check out my daily options article.
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