US stocks ended the week lower after Friday’s sharp sell-off as markets took stock Federal Reserve System Chair Jerome Powellrecent speech in Jackson Hole Economic Symposium. Powell indicated that the US Central Bank will continue to raise interest rates aggressively until inflation is coming under control. For the week, the Dow fell 4.2%, the S&P 500 fell 4%, while the Nasdaq fell 4.4%. The yield on 10-year Treasuries closed the week at 3.03%, pushed higher by expectations of higher borrowing costs as the Fed continues to hike tighten monetary policy. Oil prices ended the week slightly higher after reports showed a drop in U.S. crude inventories amid stronger export growth. Price West Texas Intermediate (WTI) Oil closed the week just below $93 a barrel.
Next week, market watchers will pay close attention to the US labor market in anticipation Bureau of Labor Statistics’ (BLS) August non-agricultural wages report on friday. at the beginning of the week Job Vacancies and Turnover Survey (JOLTS) report will provide the latest on hiring, departures and separations for the month of July, while payroll services provider ADP will release its National Employment Report tracking non-agricultural growth the private sector payslip.
The latest home price data is expected on Tuesday with updates Case-Shiller National Home Price Index along with Freddie Mac’s Home Price Index (HPI), following the month of June. ISM and Chicago Manufacturing are also expected PMI numbers that will provide updates on the strength of the goods manufacturing sector. As corporate earnings season winds down, we can still expect news from a number of influential companies, including Baidu, HP, Chewy, Best Buy and Lululemon Athletica, among others.
Key things
- Corporate earnings reports are expected from Baidu, HP, Chewy, Best Buy, Lululemon Athletica and Campbell Soup Company, among others.
- The latest Job Vacancies and Labor Turnover Survey (JOLTS) will be released on Tuesday and will offer data on job vacancies, hires, departures and separations for the month of July.
- Payroll services provider ADP will release its National Employment Report on Wednesday, which tracks private sector wage growth during June, July and August.
- On Friday, the BLS will release its latest nonfarm payrolls report, which indicates whether the U.S. economy continued to add jobs in August.
- National home price updates are expected on Tuesday with the release of the Case-Shiller National Home Price Index and Freddie Mac’s House Price Index (HPI), tracking price growth in June.
- PMI data from the Institute for Supply Management (ISM) will provide an update on the strength of the US manufacturing sector.
Event calendar:
Monday, August 29
- Pinduoduo (PDD), Heico Corp. (HEY) and Catalent Inc. (CTLT) to report earnings
- Dallas Fed Manufacturing Index (August)
Tuesday, August 30
- Bank of Montreal (BMO), Baidu (BIDU), CrowdStrike (CRWD), HP (HPQ), chewing (CHWY), Best Buy (BBY), a large number of (BIG) and China Eastern Airlines (CEA) to report earnings
- S&P Case-Shiller Home Price Index (June)
- Freddie Mac National House Price Index (June)
- JOLTS Job Opportunities, Termination and Separation (July)
Wednesday, August 31
- Brown Forman (BF.B), Veeva Systems (VEEV), Octa (OCT), The Cooper Companies (COO), Five Under (FIVE), Designer Brands/DSW (DBI) and Express Outfitters (EXP) to report earnings
- ADP Private Nonfarm Payrolls (June, July, August)
- Chicago PMI Survey Results (August)
Thursday, September 1
- Broadcom (AVGO), China Petroleum & Chemical Corp. (SNP), Lululemon Athletica (A SEXY WOMAN), Hormel Foods Corp. (HRL), Campbell Soup Co. (CPB), Weibo Corp. (WB) and SmartSheet Inc. (SMAR) to report earnings
- S&P Global Manufacturing PMI – Final Reading (August)
- ISM Manufacturing PMI (August)
- Construction Expenditures (August)
- Non-agricultural labor productivity growth (Q2 2022)
Friday, September 2
- Nonfarm payrolls report (August)
- Factory Orders (July)
Labor market news
The US labor market will be in the spotlight next week, culminating in August non-agricultural wages report on friday. On Tuesday, Bureau of Labor Statistics (BLS) is set to issue monthly Job Vacancies and Turnover Survey (JOLTS) report tracking hiring, firings and separations for the month of July. Payroll services provider ADP will publish on Wednesday National Employment Report profit tracking v the private sector payslip. Data will be published for June, July and August after previous reports were delayed due to an update to the methodology.
On Friday, the BLS is set to release its nonfarm payrolls tracking reports job growth in August. Consensus estimates call for 290,000 job gains after stronger-than-expected in July a gain of 528,000 positions. As of last month, the labor market has recovered from all the losses from the pandemic period Unemployment rate corresponding to its pre-pandemic level of 3.5%. So far, the labor market remains a rare bright spot in the economy, defying the worsening outlook across other sectors of the economy. Federal Reserve System officials including the chairman Jerome Powell pointed to the strength of the labor market as a sign that the US economy is currently not in va recession.
National house price update
Next week, market watchers will be looking for signs of a cooling housing market with the latest updates on national home prices. On Tuesday, index provider Standard & Poor’s will publish its Case-Shiller National Home Price Index, tracking price growth in June. Home prices rose 1.5% earlier in May, or 20.5% from a year earlier, compared with a record monthly gain of 3.1% in March. Price gains in May were strongest in the Tampa metro area, which rose 36.1% year-over-year, followed by Miami and Dallas at 34% and 30.8%, respectively.
Also on Tuesday, the mortgage originator Freddie Mac release their national Home Price Index (HPI) covering the month of June. The index, which tracks single-family home prices, rose 1.4% in May, slowing for four consecutive months from a record 1.9% gain in February. A cooling in the US housing market, as evidenced by recent declines in the year sale of houses and housing begins, has yet to translate into a significant slowdown in price growth. Home prices continued to surge to record levels throughout 2022, despite the impact of rising mortgage rates and declining affordability.
