Monday's Market Minute: Potential Market Movers

With markets in a bit of a holding pattern – many currently finding comfort at or near their 50-day moving average – it appears as if investors and traders are in a bit of a “wait and see” mode ahead of upcoming U.S. elections and as lawmakers still have yet to pass a stimulus bill. We’re seeing some optimism amongst investors to begin the week after comments from Nancy Pelosi over the weekend; she essentially gave Republicans forty-eight hours to agree to a deal in order to get it passed prior to the election. I think this week we have three things to keep an eye on.

First, earnings: with something like 90 companies from the S&P 500 reporting quarterly results this week, many will be watching to see how corporations have managed amidst unprecedented pandemic conditions. Keep an eye on IBM IBM, Netflix Inc NFLX, Coco-Cola Co KO, Abbott Laboratories ABT, Chipotle Mexican Grill, Inc. CMG and Tesla Inc TSLA to name a few.

Next, there’s a fair amount of concern related to the sharp rise in coronavirus infections globally, which already has forced many cities in Europe to reintroduce restrictions. The question remains, will this start to happen here in the U.S. as well, and how much will this impact economic conditions still struggling to get back to pre-pandemic levels? I think many will also be keeping a watchful eye on economic data.

This week Fed Chair Jerome Powell kicks things off Monday with a speech at an IMF sponsored event. In addition to that, we also have the Housing Market Index. I think this week, the focus will be primarily on housing data. On Tuesday, the Housing Starts and Building Permits report; Wednesday we have the MBA Mortgage Applications, EIA Inventories and Beige Book. Thursday, the focus will be on jobless claims and Existing Home Sales. The week goes out on a quiet note with the PMI Composite Flash and the Baker-Hughes Rig Count. But, with housing still being a bright spot in the economy it will be key for investor confidence for that to continue. These are the key data points we should all be keeping a close eye on throughout the week to stay on top of things.             

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