What Next After the S&P 500 Slumps 3% Last Week?
29 Agosto 2022 - 5:35AM
Finscreener.org
The equity markets in the U.S.
experienced a sell-off on Friday after Federal Reserve Chairman,
Jerome Powell, indicated the central bank will keep raising
interest rates in the future to keep inflation in check. In the
last week:
The 10-year
Treasury yield stood at 3.03% on the back of a tighter monetary
policy and higher borrowing costs. Further, crude oil prices moved
higher last week as inventories in the U.S. declined due to rising
exports of the commodity. The prices for the West Texas
Intermediate crude
closed at $93 per barrel on Friday.
The upcoming week will remain
crucial for equity markets and investors will closely watch the
U.S. labor markets as the nonfarm payrolls report for August will
be reported on Friday. The Job Opening and Labor Turnover Survey
report will also be released this week, providing information on
hires, resignations, and separations for the month of
July.
Additionally, payroll services
provider ADP will release the National Employment Report, which
tracks the growth in nonfarm private sector payrolls.
The Case-Shiller National Home
Price Index, as well as Freddie Mac’s House Price Index, will be
published on Tuesday. Wall Street will also be waiting for the ISM
and Manufacturing PMI numbers that provide a peek into the health
of the manufacturing sector.
Which companies will report earnings this
week?
There are a few companies
reporting quarterly earnings in the upcoming week. These
include:
Lululemon Athletica: In the quarter that ended in July, analysts
expect Lululemon Athletica (NASDAQ:
LULU) to report revenue of $1.76 billion and adjusted
earnings of $1.86 per share.
Chewy: The
online pet store Chewy (NYSE: CHWY)
is expected to report sales of $2.48 billion and an adjusted loss
of $0.12 per share in the July quarter.
Best Buy: A big
box retailer, Best Buy (NYSE: BBY)
is forecast to report revenue of $10.27 billion and adjusted
earnings of $1.29 per share.
Macro data will continue to impact the S&P
500
With the earnings season coming
to an end, equity indices, including the S&P 500, will
remain volatile in case macroeconomic data disappoints. As
mentioned above, nonfarm payroll data will be reported for the
month of August, and analysts expect jobs to increase by 290,000
this month after they rose by 528,000 in July.
The labor market has already
recovered from pandemic-era losses, with unemployment rates
dropping to 3.5%. A strong labor market is among the few bright
spots for individuals who are wrestling with inflation and rising
interest rates.
Market participants will also try
to analyze the strength of the housing market as Standard and Poor
is set to release its Case-Shiller National Home Price Index for
June on Tuesday.
Home prices rose 1.5% on a
monthly basis in May and were up 20.5% year-over-year. In March,
the Home Price Index reported a record monthly gain of 3.1% in
March.
Mortgage originator Freddie Mac
will also report the National House Price Index for June, which
rose 1.4% in May after it decelerated for four consecutive
months.
The cooldown in the U.S. housing
market is expected, with interest rates rising at an accelerated
pace, making loans expensive. But home prices have continued to
move higher in 2022 despite higher borrowing costs and lower
affordability.
Best Buy (NYSE:BBY)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Best Buy (NYSE:BBY)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024