This week is crucial for the markets as key earnings reports, economic data releases, and evolving commodity and cryptocurrency trends drive investor sentiment. Here’s what to look for as we close out the third quarter and head into the final stretch of 2024.
Last Week’s Stock Market Recap
The S&P 500 gained 1.2% last week, while the Nasdaq advanced 1.8%, powered by continued strength in tech stocks like Tesla and Nvidia. Investors remain optimistic following the Fed’s 50-basis point rate cut, which is expected to support growth stocks. Meanwhile, energy stocks continued to lag due to persistent volatility in oil prices, which have been fluctuating as global demand faces uncertainty.
Key Earnings Reports This Week
Several significant earnings reports are scheduled for this week:
- Carnival (CCL) – Reporting on Monday, September 30, Carnival’s results will shed light on the state of the cruise industry post-pandemic, with analysts projecting earnings of $1.17 per share.
- McCormick & Company (MKC) – On Tuesday, October 1, McCormick’s earnings will provide insights into consumer spending on food products amid inflationary pressures. Analysts expect earnings of $0.67 per share.
- Levi Strauss & Co. (LEVI) – Reporting on Wednesday, October 2, Levi’s earnings will offer clues on retail trends and the impact of inflation on apparel sales. Expectations are for $0.31 per share(MarketBeat)(Kiplinger.com).
Economic Data to Watch This Week
A host of important economic reports will shape the market narrative this week:
- Chicago PMI (Monday, September 30): This manufacturing report will give insights into the state of industrial activity, particularly in the Midwest.
- ISM Manufacturing Index (Tuesday, October 1): A critical report that will reveal the health of the broader U.S. manufacturing sector, which has faced headwinds from higher input costs and global supply chain disruptions.
- U.S. Durable Goods Orders (Wednesday, October 2): An indicator of future business investment, this report will be closely watched to assess economic momentum.
- Personal Income and Spending (Friday, October 4): This data will provide key insights into consumer behavior, a primary driver of U.S. economic activity, and will indicate how the Fed’s rate cuts are impacting spending(Kiplinger.com).
Commodities Outlook
Oil prices remain volatile, with Brent crude hovering around $90/barrel as concerns over global demand and geopolitical tensions persist. If further disruptions in the Middle East occur, expect oil prices to spike. Conversely, gold surged by 2.5% last week, as investors sought safe-haven assets amidst ongoing uncertainty. This trend could continue if inflation fears reignite or stock market volatility picks up.
Crypto Market Recap: Gainers and Losers
In the crypto world, last week saw:
- Bitcoin (BTC) rising by 3.46%, reaching key resistance near $63,000. If Bitcoin can break through this resistance, it could push toward higher levels.
- Ethereum (ETH) showed modest gains of 2.9%, though it still faces challenges breaking above $1,750.
Meanwhile, Shiba Inu (SHIB) dropped 7.37%, while Dogecoin (DOGE) fell 5.47% amid weakening interest in meme coins. Investors seem to be rotating back into larger-cap cryptocurrencies like Bitcoin and Ethereum, as they are perceived to be safer amid broader market uncertainty.
Stock with Greatest Upside Potential: Levi Strauss & Co. (LEVI)
Levi Strauss has seen a dip in recent months, but with its earnings report due this week, the stock is poised for a potential upside if it can surprise to the upside with better-than-expected consumer demand. With the apparel sector facing inflationary pressures, Levi’s ability to manage costs and sustain sales will be key to a potential breakout.
Wrap Up
This week, market movements will largely depend on the fresh round of earnings reports and economic data releases. Investors should watch how the market reacts to manufacturing data, consumer spending reports, and the ongoing volatility in commodities and crypto markets. Stay tuned for what promises to be an eventful start to Q4 2024.
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