Last Week’s Market Movement:
The market closed the week on a positive note, thanks to a temporary resolution of the port strike and the release of new unemployment data.
Port Strike Update:
The Union and port workers reached a temporary agreement, allowing workers to return to their jobs with a 62% wage increase, slightly below the initial demand of 77%. While this agreement is only in place until January 15th, the immediate threat of disruption has subsided, easing market concerns over potential supply chain impacts.
Unemployment Data:
The U.S. economy added 225,000 jobs to the private payroll sector, lowering the unemployment rate to 4.1% from last month’s 4.2%. This improvement reassures investors who were worried that the Fed's recent 50 BPS rate cut might signal desperation to stabilize the job market. The better-than-expected jobs report suggests that unemployment is not spiraling out of control, bringing some relief to the markets.
What to Watch This Week:
Bank Earnings:
Earnings season officially begins as major banks like JPMorgan, Wells Fargo, and BlackRock report their quarterly results on Friday. Investors will closely monitor these reports, particularly in light of the recent interest rate cut. Key areas of focus will be projections related to consumer credit, loans, and mortgages, given these banks’ influence on U.S. capital flow.
Inflation Data:
September’s Consumer Price Index (CPI) report, set for release on Thursday, is expected to show a slight improvement from 2.5% to 2.3%. While the Fed's tight monetary policy has helped stabilize inflation, analysts are cautious about potential price increases following the recent rate cut. However, a sudden spike in inflation is unlikely, and the CPI is expected to align with forecasts.
Upcoming Events:
Tesla and AMD Announcements:
Tesla and AMD both have significant events planned this week, where they will unveil new technologies and provide updates on key projects.
Tesla is expected to showcase its highly anticipated Robotaxi, a driverless vehicle designed for ride-sharing. The company will also reveal details on its Optimus Bot, advancements in self-driving software, and a new budget-friendly EV. Despite a recent dip due to missed delivery projections, Tesla’s stock remains near its 52-week high.
AMD will host its "Advancing AI" event, with CEO Lisa Su addressing developments in artificial intelligence. As a major player in the AI space, AMD’s event may also drive interest in other companies like Nvidia and Taiwan Semiconductor.
Stay tuned for these key developments as they unfold throughout the week.