Jobs and Inflation Data, Salesforce and Best Buy Earnings, and More to Watch This Week
This week's highlights include new data on the U.S. labor market, earnings reports from several retailers, and the latest inflation data.
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Posted 8/27/2023, 7:00:00 PM
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Investors will have a lot to consider this week as they analyze economic indicators such as US nonfarm payrolls, wage growth, and inflation, as well as Eurozone inflation numbers and central bank commentary, all of which could impact policy decisions and market sentiment.
Investors will be focusing on new data on the U.S. labor market, including job openings and the nonfarm payrolls report, as well as earnings reports from retailers and the latest inflation data.
Investors are eagerly awaiting news about the health of the US labor market, with reports on job openings, labor turnover, employment, and job cuts expected this week, as the Federal Reserve aims to cool the economy to fight inflation caused by higher labor costs.
Global markets are watching for the latest round of retailer earnings reports as well as the release of the July Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics, while European indexes are being boosted by a jump in commodity prices linked to China's stimulus measures.
The August jobs report is highly anticipated as investors assess the health of the labor market amidst rising interest rates and inflation, with projections indicating an increase in hiring and a steady unemployment rate, but potential disruptions from ongoing strikes and bankruptcies could affect the data. The report is closely watched by the Federal Reserve for signs of labor market softening as they grapple with inflation, and while the labor market has remained tight, there are indications of a gradual slowdown. Job openings have decreased, along with resignations, pointing to a labor market that is cooling.
The week has been driven by macroeconomic data, but the threat of economic contraction is not currently imminent, with the US Ten-Year Note yielding around 4.11% overnight and the US Dollar Index trading around 103.5; the Bureau of Labor Statistics will release its employment-related surveys for August today, with economists expecting non-farm job creation of around 170,000 and wage growth at 4.4% year over year.
The August employment report showed an increase in unemployment and a jump in the number of workers unemployed for more than 27 weeks, indicating a normalization of the labor market; however, the report also highlighted the potential for further job gains in September as new labor force entrants search for employment.
The coming week is expected to be lighter for investors, with the Federal Reserve's interest rate decision being the highlight, as US markets observe Labor Day and updates on the services sector and corporate earnings are anticipated.
This week's economic reports, including the Consumer Price Index, Retail Sales, and Consumer Sentiment Index, will provide crucial information for investors and may influence the Federal Reserve's interest rate decision.
The main event to watch this week is the latest inflation data, which will precede the Federal Reserve's September policy meeting.
The latest data on inflation, gas prices, SNAP benefit cuts, job prospects, Wells Fargo layoffs, student loan scams, and McDonald's beverage stations are discussed in this financial news update.
Summary: The markets have experienced various shocks this week, with the most significant one coming from the Federal Reserve, making labor data more crucial than Fed discussions.