Main topic: The stock market uptrend is facing pressure ahead of earnings reports from technology companies like Nvidia, Marvell Technology, Workday, and Snowflake.
Key points:
1. Nvidia, a leading technology company, is set to report earnings and is currently testing its 10-week moving average.
2. Marvell Technology is expecting revenue growth to accelerate in the second half of the year despite declining earnings and revenue.
3. Workday is showing relative strength and analysts are expecting another solid quarter of growth in both profit and revenue.
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.
Mixed economic reports and market volatility have raised concerns ahead of the Federal Reserve's policy rate meeting, with retail sales exceeding expectations but a decline in consumer sentiment and rising fuel prices signaling a potential weakening in consumer spending; the successful IPO of chip designer Arm Holdings has boosted investor sentiment, while the initiation of the autoworkers' strike has negatively impacted markets; all eyes will be on the Federal Reserve's meeting this week, with investors closely monitoring data for insights into future decisions.
Constellation Brands, the owner of Corona beer, is expected to have a positive earnings report due to the resilience of alcohol sales during times of financial constraints.
Constellation Brands raises fiscal-year earnings expectations after reporting second-quarter profit and revenue that beat Wall Street estimates, driven by strength of the Modelo brand.
The upcoming nonfarm payrolls report will test Wall Street's fears of a strong labor market potentially leading to high interest rates and a weak stock market, as economists predict a net increase of 170,000 new jobs in September.
Investors await the September employment report to gain insight into the Federal Reserve's potential actions, while Levi Strauss reports mixed earnings and Tesla slashes prices on its Model 3 and Model Y vehicles.
Constellation Brands' upcoming investor day may have a greater impact on its stock than its recent earnings report, as it could provide insight into its future investment prospects and potential actions by activist hedge fund Elliott Management.
Investors should focus on the start of earnings season, reports from companies like Walgreens, Domino's, and PepsiCo, and the impact of nonfarm payroll figures on the economy, according to CNBC's Jim Cramer.
