Monday's Market Minute: Earnings Roll On As Greenback Strengthens

U.S. indices and bitcoin futures remain a focal point as they hold near all-time highs to begin the week, and both are testament that the risk-on environment we’ve seen this fall remains alive and well. Meanwhile, we have U.S. interest rates holding in a well-defined range and supportive of the conditions that have fueled investors’ appetites for American equities.

This week we have some closely watched economic data. First, Retail Sales will provide further insight into consumer trends on Tuesday, as well as the Housing Market Index, Industrial Production, a handful of Fed speakers, and Jobless Claims to stay dialed into as well this week. Next up, we have corporate earnings, and for the most part, the attention will be on the retailers such as Macy’s M, Target TGT, Home Depot HD, and Walmart WMT to name a few. It’s a long list, and the numbers should give us more information on inflation pressures, bottleneck constraints, and other input costs and outlooks into the holidays.

Last but not least, the U.S. dollar is on the move higher, reaching levels last week that hasn’t been seen since the summer of 2020. Keep in mind that oftentimes the greenback is seen as a headwind to U.S. equities as it strengthens, so it could be seen as a sign rate here in the U.S. will move higher first or rise faster than other countries – not to mention that a rising dollar tends to weigh on commodities. The point being, the U.S. dollar on the rise could derail some of the trends we’ve been seeing if it continues, which is certainly something to keep an eye on.

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