The U.S. stock market may attempt to move higher at the opening bell this morning, as we enter the final week of August. In the days ahead, investors will receive numerous economic releases, as well as profit reports from a handful of leading technology companies. At the time that we were writing this update, the S&P 500 Index futures were ahead seven points (0.13%) in pre-market trading.
A number of notable economic reports will be released over the next few days. This morning, a report tracking durable goods orders for the month of July showed positive progress, aided by demand for automobiles and other large items. Tomorrow, the Conference Board will publish the Consumer Confidence Index for the month of August. This item should warrant some attention, as investors have voiced concerns that the consumer might be losing steam. On Thursday, a revised estimate of second-quarter GDP (Gross Domestic Product) will be released. This issuance provides another look at the economy and will be closely watched by traders. Finally, on Friday the PCE (Personal Consumption Expenditures) Price Index for July is set to be released. Although inflation seems to be under control, a higher-than-anticipated reading would come as a surprise and might lead to considerable market volatility. At this juncture, investors almost unanimously expect that the Federal Reserve will lower interest rates in September. However, it is not clear how much rates will be reduced, and what action might follow later this year.
Meanwhile, a number of widely-held technology companies are slated to post their results this week. Foremost, we will hear from NVIDIA (NVDA), a leader in the AI (artificial intelligence) arena. In addition, Salesforce (CRM), a provider of enterprise software, will weigh in with its numbers. It should be noted that Salesforce is a member of the Dow Jones Industrial Average, and its performance can influence the direction of the broader market. We will also receive a release from Crowdstrike (CRWD), a cybersecurity company that has been involved with a brief but severe disruption of Internet functions for many of its customers this summer.
The stock market has managed to recover much of the ground that was lost in late July. The S&P 500 Index is currently sitting at the 5,640 mark, just about 1% below its recent high-water mark. It remains to be seen if stocks can move meaningfully higher from here, or if some resistance will be encountered along the way. In addition to events taking place on our shores, the conflict in the Middle East, and its impact on oil prices, is worth monitoring. - Adam Rosner
At the time of this article’s writing, the author had a position in NVIDIA.
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