US stocks rise last week closed a seven-week losing streak For the S&P 500 and Nasdaq, the Dow posted gains for the first time in eight weeks.
These gains ended the longest streak of weekly losses for the S&P 500 in more than a decade after the index entered bear market territory. All three major indices posted weekly gains of at least 5%, supported by a range of optimistic economic data and more positive earnings reports from the retail sector.
Only three times in history (1970, 1980 and 2001) the S&P 500 has had a losing streak of this length, with the index rising 33% twice in the next 12 months. According to LPL Financial data.
“Of course, to be honest, [performance after] most [decline] Sledding was tough in 2001,” said Ryan Detrick of the LPL; In the next 6 months, the S&P 500 fell another 14%.
Wall Street will be closed Monday for the Memorial Day holiday.
Investors are expected to take a cue from key employment data from the last week of May, which was cut by the holiday, when trading resumed on Tuesday.
The Labor Department’s closely watched employment report will provide a snapshot of U.S. employment as concerns over uncertainty in the economic outlook grow. May’s employment data is expected to reflect a slowdown in hiring from one country. Pre-reading of 428.00 jobsAccording to Bloomberg estimates, economists are looking for 325,000 jobs added or created in the last month.
With many prominent companies reporting inflationary profit pressures and seeing stocks fall in recent weeks, market participants were wary that firms could lay off workers and cut hiring to cut costs.
On the employment front, investors also ADP’s report on private payrolls – the precursor to the government’s main jobs report — the Department of Labor’s Job Openings and Workforce Turnover Survey, or JOLTS, and the next weekly jobless claims.
The consumer confidence index, due to be released on Tuesday, will serve as another key indicator of economic sentiment as investors keep a close eye on consumer resilience amid talk of the ongoing recession.
Positive in the last trading days Major retailers’ quarterly results aggregated It helped alleviate, at least temporarily, concerns that inflationary headwinds might affect profit margins.
“Based on its earnings, along with other trends such as declining consumer confidence and real incomes, the consumer suddenly seemed much more vulnerable,” Brad McMillan, Chief Investment Officer for the Commonwealth Financial Network, said in a note. “As the consumer is, so is the economy and ultimately the market.”
Indeed, if company forecasts come true, macroeconomic pressures are likely to appear more meaningfully in second-quarter results.
The term “inflation” was mentioned at least once in 398 earnings calls conducted by S&P 500 companies between March 15 and May 24. Research from FactSet citedwith a similar number – 338 – talking about the “supply chain” in roughly the same period.
Additionally, the S&P 500 reported earnings growth of 9%, the lowest since the fourth quarter of 2020 and 68 companies tracked by the index, with negative EPS guidance for Q1, the highest since the year-end quarter of 2019, according to FactSet. provided.
“If the economy is nearing the door of recession, layoffs will escalate further and it’s too early to rule out further staff cuts in the weeks and months to come,” FWDBONDS Chief Economist Christopher Rupkey said in a recent note. “Top tech companies have seen their share prices drop, which will force management to tighten their belts, and for most companies the biggest expense is always labor.”
Eddie Ghabour, co-founder and managing partner of Key Advisors Group, told Yahoo Finance Live, “For us, this is nothing more than a bear bounce. When you look at these bounces we’ve had, it’s very light volume, not a lot of conviction.
Ghabour also warned that “it is a very dangerous market in the next few months”, stating that the data that caused rapid sales in stocks in the past weeks is the first quarter data and the figures for the current quarter may worsen.
Monday: Remembrance Day. There are no notable reports scheduled to be published.
Tuesday: FHFA Housing Price Indexon a monthly basis, March (expected 2.0% vs. 2.1% in the previous month); Housing Price Purchasing Indexquarter-to-quarter, Q1 (3.3% in the previous quarter); S&P CoreLogic Case-Shiller 20-City Compositeon a monthly basis, March (expected 1.90% vs. 2.39% in the previous month); S&P CoreLogic Case-Shiller 20-City Compositeyear-on-year, March (19.85% expected, 20.20% in previous month); S&P CoreLogic Case-Shiller US National Home Price Indexyear over year, March (19.80% in previous month); MNI Chicago PMIMay (expected 55.5 versus 56.4 in previous month); Conference Board Consumer ConfidenceMay (103.5 expected, 107.4 expected in previous month); Conference Board Current StatusMay (152.6 in the previous month); Conference Board ExpectationsMay (77.2 at the time of previous reading); Dallas Federal Reserve Production ActivityMay (expected 1.5, 1.1 in previous month)
Wednesday: MBA Mortgage ApplicationsFor the week ending May 27 (-1.2% over the previous week); S&P Global US Manufacturing PMIMay finale (57.5 expected, 57.5 in previous month); Construction Expenditureson a monthly basis, April (expected 0.6% vs. 0.1% in the previous month); ISM ManufacturingMay (expected 54.5 versus 55.4 in previous month); Paid ISM PricesMarch (80 expected, 84.6 previous month); ISM New OrdersMay (53.5 in the previous month); ISM EmploymentMay (50.9 in previous month); JOLTS job postingsApril (11,400 million expected in previous month, 11.549 million); WADS Total Vehicle SalesMay (14.30 million expected, 14.29 million previous month); Federal Reserve Publishes Beige Book
Thursday: Challenging Business Interruptionsyear over year, May (6.0% in previous month); ADP Employment ChangeMay (300,000 expected, 247,000 in previous month); Non-Farm ProductivityQ1 final (expected -7.5%, 7.5% in previous month); Unit Labor Costs Quarter 1 (anticipated 11.6%, final 11.6%); Unemployment Claim ApplicationsWeek ending May 28 (210,000 expected, 210,000 in previous week); Ongoing Claimsweek ended May 21 (anticipated 1.346 million versus 1.346 million in previous week); Factory Orders Excluding ShippingApril (2.5% in the previous month, revised to 2.1%); Factory OrdersApril (expected 0.7%, prior month 2.2%, revised to 1.8%); Durable goods ordersApril finale (0.4% expected, 0.4% in the previous month); Durable goods, excluding transportationApril finale (0.3% in previous month); Non-defense capital goods orders excluding aircraftApril finale (0.3% in previous month); Shipments of non-defense capital goods excluding aircraftApril finale (0.5% expected, 0.8% in previous month)
Friday: Change in Non-Farm PayrollsMay (325,000 expected in previous month, 428,000); Change in Special PayrollsMay (303,000 expected, 406,000 in previous month); Change in Manufacturing PayrollsMay (37,000 expected, 55,000 in previous month); Unemployment rateMay (3.5% expected, 3.6% in the previous month); Average Hourly Earningson a monthly basis, May (0.4% expected, 0.3% in the previous month); Average Hourly Earningsyear-over-year, May (5.2% expected, previous month 5.5%); Average Weekly Hours All EmployeesMay (34.6 expected, 34.6 in previous month); Labor force participation rateMay (expected 62.3% versus 62.2% for the previous month); Underemployment RateMarch (7.0% in the previous month); S&P Global Manufacturing PMIMay finale (predicted 53.5 versus expected 53.5 in previous month); S&P Global US Composite PMIMay finale (53.8 expected, 53.8 in previous month); ISM Services Index (56.5 expected, 57.1 in previous month)
Remembrance Day. There are no notable reports scheduled to be published.
Before the market opens: Kirkland’s (FOURTY)
Before the market opens: There are no notable reports scheduled to be published.
Before the market opens: Hurmel Foods (HRL)
There are no notable reports scheduled to be published.
Alexandra Semenova is a correspondent for Yahoo Finance. follow him on twitter @alexandraandnyc