Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Top 5 things to watch in markets in the week ahead

Economy Nov 27, 2022 07:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
US500
-0.94%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Noreen Burke

Investing.com -- Friday’s U.S. jobs report for November will be the main highlight of the coming week as investors remain hopeful that the Federal Reserve will soon slow the pace of rate hikes. Remarks by Fed Chair Jerome Powell mid-week will be closely watched. Eurozone inflation data will also be in the spotlight, as will PMI data out of China amid concerns over a resurgence of COVID cases there. Here’s what you need to know to start your week.

  1. Nonfarm payrolls

Expectations that the Fed may soon slow the pace of its aggressive rate hikes were boosted by last week’s minutes from the central bank’s November meeting. Friday’s U.S. jobs report for November will put those expectations to the test.

Economists are expecting the U.S. economy to have added 200,000 new jobs, in what would be the smallest increase since December 2020.

The jobs report is also expected to show that growth in average hourly earnings is moderating, while the unemployment rate is expected to hold steady just above a five-decade low at 3.7%.

It will be the last nonfarm payrolls report before the Fed’s final meeting of the year in December.

But investors have reason to remain cautious - five of the last six jobs reports have come in better than forecast and another strong reading could spell trouble for U.S. stocks.

  1. Fedspeak

Fed Chair Jerome Powell is to discuss the economic outlook during an appearance at the Brookings Institution on Wednesday.

While Powell has indicated that the Fed could shift to smaller rate hikes next month, he has also said rates ultimately may need to go higher than policymakers thought would be needed by next year.

Meanwhile, St. Louis Fed President James Bullard and New York Fed President John Williams are both due to make appearances on Monday.

The economic calendar also features the ISM manufacturing PMI and the Fed’s favored measure of inflation - the core PCE price index - both of which are published on Thursday.

Other reports during the week include ADP nonfarm payrolls, initial jobless claims, consumer confidence and the Fed’s Beige Book.

  1. Retail stocks

As Wall Street reopens after the Thanksgiving holiday investors will be focused on how retailers are faring over the holiday shopping period, as well as the Fed’s next steps.

Black Friday sales got underway against a backdrop of persistently high inflation and cooling economic growth. Retailers are offering steep discounts both online and in store, which will likely impact profit margins in the fourth quarter.

Online spending rose by 2.3% to a record $9.12 billion on Black Friday, according to a report by Adobe Analytics on Saturday, but the percentage increase was well below the annual rate of inflation which is currently running at 7.7%.

U.S. retail stocks have become a barometer of consumer confidence as inflation bites. So far this year, the S&P 500 retail index is down a little over 30%, while the S&P 500 has fallen 15%.

  1. Eurozone inflation

While there are tentative signs that inflation in the U.S. may be peaking, Wednesday’s Eurozone inflation data is expected to show that price pressures in the bloc remain strong.

Eurozone CPI hit 10.6% in October, more than five times the European Central Bank's 2% target.

The ECB raised rates by 75 basis points to 1.5% at its meeting in October, bringing its total hikes to 200 basis points since July for its fastest policy tightening on record.

Last week’s minutes of the ECB’s October meeting showed that while policymakers have been adamant that rates need to increase further to help lower inflation, they cannot fully agree on their ultimate destination or pace.

Market bets are fluctuating between a 50- and a 75-basis-point increase when ECB policymakers next meet on Dec. 15.

  1. China PMIs

As China grapples with a record number of COVID-19 infections and new lockdowns, hopes have dimmed for a reopening of the world's second-biggest economy in the first quarter of 2023.

PMI data on Wednesday will be closely watched as widespread COVID curbs continue to depress economic activity.

Officials have vowed to continue with virus restrictions despite the growing public pushback and the mounting toll on the economy.

China said on Friday it would cut the amount of cash that banks must hold as reserves for the second time this year, releasing liquidity to prop up a faltering economy.

--Reuters contributed to this report

Top 5 things to watch in markets in the week ahead
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (19)
Kerry Ditto
Kerry Ditto Nov 28, 2022 3:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
aggressive rate hikes had no damping effects on pce core prices. fed has to hike more aggressively otherwise it would ugly stagflation worst ever.
Randall Paul
Randall Paul Nov 28, 2022 1:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
online sales boosted but box retailers are in trouble. Dow had a nice low volume run up and tgey may try to pump it up again yo boost sentiment but unfortunately it's not going to work. Fed who cares. they are also in trouble. They should of dealt with this in 2020. for me 33500's is my target this week once this rally tops. it's going to roll over.
Otb Investor
Otb Investor Nov 27, 2022 11:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
True colors of Bidenfaltion showing now that midterms are over. No need to put lipstick on the ********anymore.
Brad Albright
Brad Albright Nov 27, 2022 11:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There has been no new inflation data since the midterms, so you are seen as talking out of Ur ash.
Kerry Ditto
Kerry Ditto Nov 27, 2022 6:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no Santa rally this year. too bad
Leonardo Araujo
Leonardo Araujo Nov 27, 2022 6:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There will be. We probably turned from bear to Bull. Powell will bring the xmas gift. Kkkkkkk
Warm Camp
Warm Camp Nov 27, 2022 2:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The market reaction to dismal Thanksgiving sales is the main issue for next week.
Kerry Ditto
Kerry Ditto Nov 27, 2022 2:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
every gamble is peace and winning gambles requires gut feeling.
Kerry Ditto
Kerry Ditto Nov 27, 2022 1:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell probably would say pivoting is premature, first thing is inflation under control. it is data-driven decision, data we know now do not warrant pivoting. don't blame powell. blame data.
Kerry Ditto
Kerry Ditto Nov 27, 2022 1:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
at last I went thru some easiness while gambling. you've got to know when to run
Warren Wesley
Warren Wesley Nov 27, 2022 1:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when to fold them
Kerry Ditto
Kerry Ditto Nov 27, 2022 1:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ta35 fell, -1%. US mkt tomorrow looks forward to maybe -2%?
Kerry Ditto
Kerry Ditto Nov 27, 2022 1:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
black friday sales seem bad. people ain't got money from govt stimulus anymore. no money, no honey.
Warren Wesley
Warren Wesley Nov 27, 2022 1:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
3% rise in black Friday sales does not beat 7.7% inflation. interesting metric.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email