This week ushers in the quieter post-earnings period, as the bulk of S&P 500 companies have already reported results. With a lighter earnings calendar, market attention will turn more squarely to economic data and policy developments that could set the tone for the second half of the year. Stocks that have enjoyed strong runs in recent weeks may see some profit-taking in this slower environment. U.S. markets will be closed Monday in observance of Labor Day.
The economic calendar does carry several important data points. Labor market figures due Wednesday, Thursday, and Friday will draw close scrutiny, particularly after recent mixed signals on employment. Nonfarm payrolls, the unemployment rate, and wage growth will be watched closely as investors gauge the likelihood of a September policy move from the Federal Reserve. Final readings for both Manufacturing and Services PMI are also expected this week. While not anticipated to deviate from the earlier flash estimates, confirmation of resilience would help bolster sentiment.
Trade policy remains a less visible but important overhang. The administration continues to tout tariff revenues and downplay the impact on margins and consumer demand, yet provides little clarity on its broader trade strategy or the status of negotiations with key partners. Markets appear to be discounting these risks, but the lack of transparency makes it difficult to assess potential fallout. Should tariff pressures begin to surface more clearly in upcoming economic data or corporate earnings, investor confidence could shift quickly. For now, the uncertainty has been ignored, but it remains a source of vulnerability.
Monday
Markets Closed
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Tuesday
Manufacturing PMI
Earnings: NIO ZS
Wednesday
JOLTS
Earnings: CRM
Thursday
Services PMI
Earnings: AVGO
Friday
US Employment
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Tracking This Week
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IBM Corporation (NYSE:IBM)continues building momentum following its challenging earnings report in late July. The initial sell-off appears overdone, as investors gradually return to the name. The market seems to be moving past the concerns that drove the earlier weakness.
UnitedHealth Group (NYSE:UNH) has established support around the $300 per share level despite ongoing DOJ investigation headwinds. While rumors suggest the investigation’s scope may be expanding, creating continued risk, institutional investors’ recent 13F filings indicate major players remain confident in their positions after conducting thorough due diligence.
Workday Inc (NASDAQ:WDAY) has recovered well after an initial post-earnings sell-off, despite reporting solid Q2 results. The company’s growth narrative remains compelling, with significant international expansion opportunities ahead. As a less widely-held software name without mainstream appeal, broader institutional adoption may take time to materialize.
