Last week’s market volatility saw AI news at the forefront, with strong earnings leading to a recovery before a late-day sell-off on Friday. The S&P 500 closed down 1.01% for the week. This week brings another round of significant events, including key earnings, employment data, and manufacturing updates.
Here are five things to watch this week in the market:
Manufacturing Data: Monday will see two crucial manufacturing readings, with the S&P Global Manufacturing PMI at 9:45 am followed by the ISM Manufacturing PMI at 10 am. The ISM report has more market impact due to its longer history and broader survey base. A sign of expansion could boost market sentiment, while continued weakness could raise concerns about economic health.
Key Earnings Releases: Monday will kick off with Palantir (PLTR) and Super Micro Computer (SMCI), followed by tech and healthcare earnings on Tuesday with Advanced Micro Devices (AMD), Alphabet (GOOGL), Pfizer (PFE), and Merck (MRK). Thursday’s close sees Amazon (AMZN) reporting after the market closes. These reports could significantly impact market direction, especially in the volatile tech sector.
Initial Jobless Claims: Thursday at 8:30 am will provide the latest labor market snapshot with Initial Jobless Claims data. Recent weeks have shown stable claims levels, suggesting continued employment resilience. Significant deviation from recent trends could influence Fed policy and economic strength expectations.
Nonfarm Payrolls and Unemployment Rate: Friday’s January employment report at 8:30 am will focus on headline jobs numbers and unemployment rate, particularly the average hourly earnings data as a wage inflation gauge. The Fed closely monitors employment data for signs of labor market cooling, which could impact rate cut expectations.
Fed Speakers: Several Federal Reserve officials are scheduled to speak this week, with market participants monitoring their speeches for clarity on monetary policy direction. Chair Powell’s comments last week pushed back against March rate cut expectations, and officials’ stances will be closely watched for any signs of caution or openness to earlier rate cuts.
Source: https://www.barchart.com/story/news/30725691/earnings-job-and-other-key-things-to-watch-this-week