Markets have entered a quieter stretch for earnings, leaving economic data as the primary driver of direction. Rate-sensitive stocks rallied following last week’s Fed decision, and that momentum could extend into the coming sessions. Several Fed officials are scheduled to speak throughout the week. Their remarks will be closely scrutinized for any divergence from Chair Powell’s recent comments. For now, the market appears more focused on the Fed’s employment mandate than its inflation mandate. As a result, this week’s flash PMI and PCE reports may not spark much reaction if they come in hotter than expected, but a softer reading could fuel a strong rally given the backdrop of rate-cut expectations.
While recent positive US-China trade developments were welcomed, the market remains cautious and will use the GDP data to gauge how effectively the economy is withstanding ongoing trade frictions. A strong GDP number would alleviate recession fears and lessen the market’s sensitivity to future trade headlines, while a weak reading could heighten concerns and reinforce the case for further Fed action.
Monday
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Tuesday
Flash Purchasing Manager’s Index (PMI)
Earnings: MU
Wednesday
Gross Domestic Product (GDP)
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Thursday
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Earnings: ACN COST
Friday
Personal Consumption Expenditures (PCE) Index
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Tracking This Week
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Mobileye Inc (NASDAQ:MBLY) has been under pressure, yet its fundamental story and operating environment remain intact. With recent rate cuts improving sentiment toward growth stocks, Mobileye’s setup could draw renewed investor interest.
Palo Alto Networks Inc (NASDAQ:PANW) is nearing record highs, and a decisive break above resistance could spark a sustained move higher. The progress in its platformization strategy should provide investors confidence it will be able to deliver on the bull case.
Workday Inc (NASDAQ:WDAY) looks positioned to advance further, supported by recent analyst upgrades that ease concerns about AI’s impact on enterprise software. Its technical setup adds to the bullish outlook.
