Stock Market Prepares for New Economic Data
Stocks dipped yesterday as the market corrected from a stellar previous week. Upcoming reports for personal consumption (on Friday) and jobless claims (on Thursday).
The Dow Jones was the only one of the major three indices to climb on Monday, with an increase of 0.16%. The S&P 500 fell by 0.32%, and the Nasdaq Composite dropped 0.85%.
Investors have interest rate cuts to look forward to, which should come in September. Jerome Powell, Chairman of the Federal Reserve, says borrowing costs should decrease very soon. These cuts have been delayed multiple times this year, as the Fed was waiting on inflation to drop. Now that US inflation is down to 2.9%, the time seems right for the cuts to be issued.
The stock market has already seen a boom in anticipation of these cuts, and it could climb further once the cuts have occurred. Stock prices do not always increase as interest rate cuts take place, though. Investors need to be careful with how they move in anticipation of the cuts. In theory, the market should rise when the cuts happen, but that may not be the case this time.
Stocks to Keep an Eye on This Week
The biggest earnings report to come this week is certainly that of Nvidia (NVDA). The chip manufacturer has done very well this year, blowing expectations for its stock growth out of the water. The company will be releasing their earnings report on Wednesday, which may be one of the busiest days for the market this week, and certainly one of the most watched.
Later this week, we will also see reports from Salesforce, Abercrombie & Fitch, Best Buy, American Eagle and Gap. Retail sales have been strong recently, and these clothing manufacturers all releasing their earnings report in the same week will help determine the short term future of the clothing industry. After Walmart issued its very positive earnings report and saw its stock price skyrocket, other retailers are hoping to see some positive news for their quarterly reports as well.

