Key Earnings, GDP and Other important economic news this Week

In a bustling earnings week, Tesla (TSLA) stole the spotlight. After reporting better-than-expected earnings, the stock surged over 15%, delighting options buyers the next morning. The momentum carried into the following days, ultimately closing the week with a more than 20% increase.

Even with the massive beat, it did not help the market as a whole with the S&P 500 ($SPX) (SPY) finishing the week just under 1.0%.

We are back on the earnings flow this week with a lot of big names reporting through out the week as well as being back into a fairly large news week.

Here are 5 important economic news to watch this week in the Market.

1. Earnings Overview

This week is packed with earnings releases, starting with Waste Management (WM) on Monday. On Tuesday, major players like Alphabet (GOOGL), Visa (V), Advanced Micro Devices (AMD), and McDonald's (MCD) will report. AMD is particularly noteworthy for tech traders, as its performance could foreshadow Nvidia’s upcoming earnings next month and Apple's results later this week.

On Wednesday, earnings reports will come from Microsoft (MSFT), Meta Platforms (META), and Caterpillar (CAT). Both Microsoft and Meta are crucial for the tech narrative due to their significant influence on the market indices, while Caterpillar’s results are essential given its large share of the construction equipment market. Their guidance for the next few quarters may impact broader market trends.

Thursday features more major announcements, including Apple (AAPL) and Amazon (AMZN), both releasing their results after the market closes. The performance of these giants could significantly sway market indexes, leading to notable movements during the overnight trading session.

2. JOLTS Report

In addition to earnings, this week will also feature important economic news. The JOLTS Job Openings report is due on Tuesday at 10 a.m. This will be the last jobs data release before the election, which could introduce additional market volatility. It’s also possible that revisions to previous months may be postponed.

3. Advanced GDP

On Wednesday at 8:30 a.m., the Advanced GDP report will be released, which could lead to significant market fluctuations. The estimate for growth is set at 3.0%, typically indicating a healthy economy. However, given the recent rise in consumer credit, a strong GDP report could prompt a market sell-off. Conversely, a weaker report might lead to a rally, signaling potential rate cuts from the Fed.

4. Core PCE

Also on Thursday, the Fed’s preferred inflation measure, the PCE Price Index, will be released. This data is critical for assessing whether the Fed has effectively controlled inflation and if further rate cuts are viable. The forecast is for a 0.3% increase, up from the previous 0.1%. A higher-than-expected figure could trigger a market decline, while a lower figure might support a rally.

5. Unemployment Rate and Non-Farm Payrolls

On Friday morning, the Unemployment Rate and Non-Farm Payrolls data will be released. Similar to the JOLTS report, this Non-Farm report could lead to considerable volatility, being the last one before a contentious election. A figure below the forecast of 125,000 jobs could exert selling pressure, while matching or exceeding expectations could boost the market.

The unemployment rate has remained stable recently, adding to the overall uncertainty.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.