What Markets to Expect this Week

What you need to know

• After job openings, private-sector reports on employment and manufacturing data earlier in the week investors will focus also on services and manufacturing sector data. 
• The remarks of New York Federal Reserve Chairman John Williams and St. Louis Fed Chair Alberto Musalem are among the final ones before the Fed blackout period.
• Salesforce, Marvell Technology Royal Bank of Canada and TD Bank are among the companies that have reported their earnings.

Investors will wait for Friday to receive the key data on employment in November. Federal Reserve officials expect to monitor this to assess if labor markets remain strong after exhibiting signs of weakness. Reports on private-sector jobs and job openings will affect the market sentiment about the state of employment.

This week will be the final time that the Fed is able to make public statements before its blackout period, which begins on December 17-18.  The closely watched  Purchasing Managers’ Index (PMI) surveys from the Institute of Supply Management (ISM) will give investors insight into the current state of the manufacturing and services sector.

The Royal Bank of Canada, TD Bank, and Bank of Montreal are all expected to report earnings this week.

Monday, Dec. 2

• S&P final U.S. manufacturing PMI (November)
• ISM manufacturing PMI November
• Spending on Construction (October).
• New York Fed President John Williams delivers remarks
• Zscaler (ZS) Reports Earnings

Tuesday, Dec. 3

• Openings for October
• Salesforce, Marvell Technology Scotiabank (BNS), Pure Storage (PSTG), Okta BOX Report earnings

Wednesday, Dec. 4

• ADP employment report (November)
• S&P final U.S. services PMI (November)
• ISM Services PMI for November
• Manufacturers orders for October
• Federal Reserve Beige Book
• St. Louis Fed President Alberto Musalem delivers remarks
• Royal Bank of Canada Synopsys, Hormel Foods Limited (HRL) Chewy (CHWY), Dollar Tree Report earnings

Thursday, Dec. 5

• Initial Jobless Claims (Week ending November 30)
• U.S. trade deficit (October)
• TD Bank Bank of Montreal Kroger (KR), Lululemon (LULU), Hewlett Packard Enterprise, or HPE. Report earnings

Friday, Dec. 6

• U.S. employment report (November)
• Consumer sentiment (preliminary) (December)
• Consumer Credit (October).
• BRP (DOOO), reports its earnings

The Employment Report will show if the labor market is still strong after October’s weak data

The November employment report due Friday will give economists a better look into the economy after the previous month’s data showed a greater-than-expected slowing in hiring—although those numbers were likely skewed by storm disruptions and a labor strike. 

The economists still expected much more than 12,000 new jobs in October. These disruptions do not explain the shortfall. This is why the Friday jobs figures will be a focus. Federal Reserve officials might be under pressure to cut interest rates more quickly if November’s data show a continued slowdown.

Prior to Friday’s employment report, economists can expect data from the private-sector, initial unemployment claims and job openings. These could provide more insight into the U.S. job market. 

The remarks of New York Fed president John Williams, and St. Louis Fed president Alberto Musalem this week will also be watched by market watchers. These comments may provide insight into how Fed officials view current economic conditions. The Fed’s remarks this week are their last chance to comment before Saturday when the Federal Reserve begins its blackout period that prohibits any comments regarding monetary policies before the Federal Reserve December 17-18 meeting.

Additionally, industry survey data from ISM and S&P Global are due at a time when manufacturing PMI has shown that sector to be struggling, while services PMI reflects continued economic growth in that sector. This week, we will also be getting data on factory orders, consumer credit, construction expenditure, and other important topics.

The earnings reports for this week are led by Salesforce, Marvell Technology and Canadian banks

Salesforce’s earnings report on Tuesday comes as analysts have expressed bullish sentiments on the customer relationship management (CRM) service provider over its artificial intelligence (AI) offerings. The software giant’s announcement of its earnings follows a decision to extend into the data security space by purchasing a startup company called Own. 

Marvell Technology will report Tuesday on its AI-driven growth.  Synopsys is another tech company that will be reporting this week. It makes microchip design software and has taken advantage of the AI demand. Zscaler, a cloud security company, will also be reporting earnings on Monday.

The TD Bank earnings report follows the recent guilty verdict in a U.S. lawsuit in which it was ordered to pay penalties of more than $ 3 billion for failing to prevent money laundering. 

Royal Bank of Canada is releasing its quarter-end financials in order to keep up with the profit growth of its Personal Banking and Wealth Management divisions.  Bank of Montreal, Scotiabank and other Canadian financial institutions are also scheduled to release their quarterly reports this week. 

Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.