Asset managers, wealth management firms, banks, and broker-dealers are expected to increase spending on market data, particularly in equities, fixed income, and alternative data, by at least 10% next year, driven by strong demand and a focus on data accuracy.
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.
U.S. stocks are set to open higher as investors await fresh labor data that could impact the Federal Reserve's interest-rate decision.
Investors are preparing for a busy week on Wall Street with reports on the job market and earnings, as well as the government's report for August, while all three major market averages finished higher on Friday.
This week's highlights include new data on the U.S. labor market, earnings reports from several 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.
Investors await the release of U.S. nonfarm payrolls and a barrage of manufacturing data to close out a week of mixed economic reports, while China's private-sector survey shows factory activity expanding despite ongoing economic challenges.
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.
Stock markets showed signs of improvement last week, fueled by hopes of a Goldilocks economic scenario, despite downward revisions in Q2 GDP growth and a slowdown in housing prices, while robust hiring and a decline in wage growth raised concerns about a cooling job market. The strength of U.S. consumers and the moderation of the Consumer Confidence index are factors that could influence the Federal Reserve's decisions on inflation, with investors advised to rely on trustworthy data and analysis. Noteworthy upcoming earnings and dividend announcements include Zscaler, Gitlab, GameStop, C3ai, American Eagle, DocuSign, and Kroger. Key economic reports this week will focus on Factory Orders, ISM Services PMI, and Q2 Non-Farm Productivity and Unit Labor Costs.
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.
U.S. stock investors are closely watching next week's inflation data, as it could determine the future of the current equity rally, which has been fluctuating recently due to concerns over the Federal Reserve's interest rate hikes and inflationary pressures.
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.
Investors are more focused on the release of new forecasts from the Federal Reserve, which will reveal their views on the prospect of an economic "soft landing" and the rate environment that will accompany it.
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.
