The upcoming week will bring a spotlight on consumers as investors brace themselves for a flurry of earnings reports and macroeconomic data. With only 14% of the S & P 500 companies having announced their earnings thus far, the coming days will see results from approximately 20% of the index, followed by more the following week. This influx of information will provide crucial insights into the economy for Wall Street, with particular attention on how consumers are faring amidst signs of slowing growth.
As inflation shows signs of easing from previous highs, many are now looking towards consumer behavior to gauge the Federal Reserve’s next moves and prevent any economic disruptions. The recent shift in investor sentiment from tech giants to smaller-cap market laggards reflects this uncertainty, with the S & P 500 experiencing its worst week since April.
Industry experts like Terry Sandven, chief equity strategist at U.S. Bank Asset Management Group, anticipate a period of sideways movement in the market before potential gains later in the year. The ongoing earnings season has seen positive surprises from companies, providing some relief to investors worried about the impact of last year’s regional banking crisis.
The upcoming week’s focus will be on companies tied to the consumer sector, such as CBRE, Sherwin-Williams, and Whirlpool, whose reports could shed light on the housing market and its implications for inflation. Additionally, major players like Visa and American Express will give insights into consumer spending patterns and inflationary pressures.
Looking ahead, key macroeconomic reports on economic growth and inflation are expected, including the Commerce Department’s GDP reading and the personal consumption expenditures price index. These data points will be vital in helping investors gauge the Fed’s response and the potential economic trajectory moving forward.
Despite some softness in consumer and housing sectors, expectations for growth remain positive, with a cautious approach being advised towards the Fed’s actions. The week ahead will offer a wealth of information that could shape market dynamics and investor sentiment, with implications for both industry players and consumers.
