Before The Bell
The U.S. stock market closed out last week on a solid note, as Wall Street seemed pleased with the latest comments from the Federal Reserve. However, it remains to be seen if further market gains can be achieved during today’s session. Overnight, the international markets have been making some progress, which is encouraging. On our shores, the S&P futures are currently ahead roughly four points, suggesting a positive start to the day.
In economic news, the pending home sales numbers for the month of July will be released this morning. This report is of some importance, as it is considered a leading indicator and can provide insight into the health of the broader housing market. Tomorrow, the Conference Board’s Consumer Confidence Index for the month of August will be released. Consumer sentiment and spending levels are critical parts of the retail sector and the general economy. Many analysts on Wall Street may be wondering if some of the recent enthusiasm will be dampened by the emergence of the Delta variant and the ongoing restrictions caused by the coronavirus. On Friday morning, the government is set to release the August employment report. No doubt, traders will be closely watching this item, as it is carefully reviewed by the Federal Reserve and is used to make major policy decisions. On a related note, the central bank held its Jackson Hole annual symposium last week. The remarks from that meeting suggested that the economy has been moving along at a nice pace, but that a cautious stance may be warranted given the path of the pandemic. Needless to say, that news sat well with traders.
In the corporate arena, we will receive a few informative reports this week. After the market closes today, we will hear from Zoom Video Communications (ZM), a leading provider of video and web conferencing solutions. Tomorrow, CrowdStrike (CRWD), a company that offers cybersecurity solutions across cloud networks, is scheduled to post its numbers. In addition, Ambarella (AMBA), a manufacturer of specialty semiconductors, is slated to weigh in with its results.
Technically, the stock market continues to march higher. Last week, the S&P 500 Index managed to move beyond the 4,500 mark, which may be a level that holds some “psychological” importance for traders. It remains to be seen if the bulls can maintain this progress, and push stocks higher in the coming days. – Adam Rosner
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
