Market Focus Shifts to Jobs Report and Powell Speech as Earnings Season Heats Up
The upcoming week is poised to be a pivotal one for investors, with the US jobs report and a speech by Federal Reserve Chairman Jerome Powell taking center stage. Meanwhile, earnings season is gaining momentum, with several notable companies set to release their quarterly results.
The US stock market ended last week on a mixed note, with the Dow Jones Industrial Average closing at a fresh record high. The blue-chip index, along with the S&P 500, posted a third consecutive week of gains, rising approximately 0.6% during the period. The tech-heavy Nasdaq Composite advanced nearly 1% over the same timeframe.
Investors are keenly awaiting Friday’s US employment report for September, which is expected to show the economy added 144,000 jobs, compared to 142,000 in August. The unemployment rate is forecast to remain steady at 4.2%. Ahead of the jobs report, the ISM manufacturing and services PMIs will also be closely watched.
In addition to the jobs report, a slew of Fed speakers, including Chairman Powell, will provide valuable insights into the central bank’s outlook for interest rates. Markets are currently pricing in a rate cut of at least 25 basis points in November, with a 50-basis-point cut given a 48.1% chance, according to Investing.com’s Fed Monitor Tool.
On the earnings front, notable companies set to report include Nike, Carnival, Levi Strauss, and Constellation Brands. Two stocks that are likely to be in focus are Tesla and Levi Strauss.
Tesla is expected to release its third-quarter delivery numbers on Wednesday, which are forecast to show improvement after a bumpy first half of the year. Wall Street analysts are predicting 462,000 vehicle deliveries for the quarter, up 6% compared to Q3 2023. The electric vehicle maker’s strong delivery numbers are driven by increasing demand, particularly in China, where government subsidies and low-cost financing have supported sales.
In contrast, Levi Strauss is struggling with weakening demand amid a challenging economic backdrop. The iconic denimwear company is expected to post lackluster earnings for its third quarter, with analysts slashing their profit forecasts in the run-up to the earnings release. Investor sentiment around Levi Strauss remains bearish, with a possible implied move of roughly 9.2% in either direction after the update.
As investors navigate the current market volatility, it’s essential to stay informed and adapt to changing market conditions. Unlock access to InvestingPro, a powerful tool that provides actionable trade ideas, advanced stock screening, and AI-backed models to help you make informed investment decisions.
Leave a Reply