Stocks Down For Second Day, Busy Week Of Economic Reports To Set The Tone Stocks were already down in pre-market trading yesterday. But then reports that Tesla posted a year-over-year sales decline weighed on markets even more. Tesla stock has struggled this year. And some of that miss was likely already baked into the performance as shares were 'only' down -4.90% yesterday. Nonetheless, it was a rough day for TSLA and the broader market in general. In other news, Factory Orders rose 1.4% m/m vs. last month's -3.8% and views for 1.0%.
And yesterday's Job Openings and Labor Turnover Survey report (or JOLTS for short), showed job openings at 8.756 million, up a bit from last month's 8.748M, but down a bit vs. the consensus for 8.8M. Today we'll get Motor Vehicle Sales, MBA Mortgage Applications, the PMI Composite Index, the ISM Services Index, and the ADP Employment Report. The ADP report is often looked at as a precursor to the official Employment Situation Report by the Bureau of Labor Statistics (BLS) a couple days later (Friday). While the ADP report has a spotty track record of predicting what the BLS report will say, it can provide insight into what to expect. That comes out at 8:15 ET. We'll also hear from OPEC. They have a meeting today, and it could result in a change in production. Crude oil has increased in price by roughly 20% YTD. While energy (and food) is stripped from core inflation, it is part of headline inflation. And whether it's stripped or not, it's felt by everyone, whether you are filling your gas tank, heating/cooling your home, or powering your business.
Additionally, we'll hear from several Fed members throughout the day at various speaking engagements, including Michelle Bowman, Fed Board of Governors member; Adriana Kugler, Fed Board of Governors member; Austan Goolsbee, President of the Federal Reserve Bank of Chicago; Michael Barr, Fed Vice Chair for Supervision; and Jerome Powell, Fed Chairman. While the official start to Q1 earnings season is 2 weeks away, we are already getting some Q1 earnings coming in. Earnings are expected to be up 2.5% with sales up 3.5%. Q2 improves to 8.8% earnings growth with sales up 4.7%. Q1, of course, comes first. But the market is forward looking. And Q3 earnings are expected to come in at 7.0%, while Q4 is forecast at 12.0%. And that bodes well for the market. Stocks are off to a rough start this week/month. But after the big three indexes finished higher for 5 months in a row, a little bit of profit taking is not overly surprising. But with a resilient economy, a robust jobs market, strong corporate profits, and personal incomes still hovering near all-time highs, it looks like there's plenty more upside to go this year. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
Tidak ada komentar:
Posting Komentar