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The topsy-turvy world of day-to-day stock investing continues in the pre-market of a new week. All three major indexes are trading in the red — the Dow -70 points, the S&P 500 -10 and the Nasdaq -60 points — following a big upswell of support Friday, which saw gains of nearly 1% to almost 1.5%, depending on the index. Nevertheless, a 2% drop across the board is what we saw in last week’s trading overall.
We don’t see any new data ahead of today’s opening bell, but later this morning we expect Factory Orders and a revision to Core Capital Goods Orders, both for August. A bounceback is expected in this data, although supply chain constraints have been a pretty steady headwind throughout much of the Great Reopening and may continue in new orders data. That said, demand for goods is expected to remain strong, which would imply future growth in orders even if today’s data is lackluster.
This is jobs week, as well. Wednesday’s private-sector payrolls from Automatic Data Processing (ADP - Free Report) and Friday’s non-farm payrolls from the U.S. government are much anticipated, especially after a surprisingly weak August jobs report from the Bureau of Labor Statistics (BLS). For ADP’s headline, analysts expect a gain of 430K new private-sector jobs having been created in September; 485K are expected from the BLS report.
Further, with the Unemployment Rate at post-Covid lows currently and expected to dip again Friday to 5.1%, it might be important for us to look at sub-headline figures like Labor Force Participation, which has remained stubbornly flat, even as wage growth is at last making progress. Currently, the U.S. is still down roughly 5 million jobs from February 2020, the last reported month prior to the pandemic.
Much has been implied about about this slow growth in the labor force, including federal government benefits making it too easy for individuals not to go back to work. But likely more accurate — especially with those programs largely ended, and wages increasing to notably higher levels from pre-Covid — is the fear of the Delta variant infecting even vaccinated people.
But with the Delta variant on the wane, as well as Merck’s (MRK - Free Report) announcement Friday that a pill to keep Covid symptoms low enough to keep those infected out of the hospital (and the morgue), it feels like this barrier to a more fully functioning workforce is falling off, as well. It’s been tough to nail employment numbers month over month (or even week over week, with jobless claims), but bias for this week’s numbers may be to the upside based on these points.
Tesla (TSLA - Free Report) shares are up 2.8% in today’s pre-market on a record number of deliveries for a quarter announced this morning: 241K is the highest number of new Teslas brought to the streets, a 73% increase year over year and higher than analysts were anticipating. Tesla stock has underperformed the broader market so far this year, up only 6%, though it is still up a fantastic 82% from this time a year ago.
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Markets Wait for Major Economic and Earnings Data
The topsy-turvy world of day-to-day stock investing continues in the pre-market of a new week. All three major indexes are trading in the red — the Dow -70 points, the S&P 500 -10 and the Nasdaq -60 points — following a big upswell of support Friday, which saw gains of nearly 1% to almost 1.5%, depending on the index. Nevertheless, a 2% drop across the board is what we saw in last week’s trading overall.
We don’t see any new data ahead of today’s opening bell, but later this morning we expect Factory Orders and a revision to Core Capital Goods Orders, both for August. A bounceback is expected in this data, although supply chain constraints have been a pretty steady headwind throughout much of the Great Reopening and may continue in new orders data. That said, demand for goods is expected to remain strong, which would imply future growth in orders even if today’s data is lackluster.
This is jobs week, as well. Wednesday’s private-sector payrolls from Automatic Data Processing (ADP - Free Report) and Friday’s non-farm payrolls from the U.S. government are much anticipated, especially after a surprisingly weak August jobs report from the Bureau of Labor Statistics (BLS). For ADP’s headline, analysts expect a gain of 430K new private-sector jobs having been created in September; 485K are expected from the BLS report.
Further, with the Unemployment Rate at post-Covid lows currently and expected to dip again Friday to 5.1%, it might be important for us to look at sub-headline figures like Labor Force Participation, which has remained stubbornly flat, even as wage growth is at last making progress. Currently, the U.S. is still down roughly 5 million jobs from February 2020, the last reported month prior to the pandemic.
Much has been implied about about this slow growth in the labor force, including federal government benefits making it too easy for individuals not to go back to work. But likely more accurate — especially with those programs largely ended, and wages increasing to notably higher levels from pre-Covid — is the fear of the Delta variant infecting even vaccinated people.
But with the Delta variant on the wane, as well as Merck’s (MRK - Free Report) announcement Friday that a pill to keep Covid symptoms low enough to keep those infected out of the hospital (and the morgue), it feels like this barrier to a more fully functioning workforce is falling off, as well. It’s been tough to nail employment numbers month over month (or even week over week, with jobless claims), but bias for this week’s numbers may be to the upside based on these points.
Tesla (TSLA - Free Report) shares are up 2.8% in today’s pre-market on a record number of deliveries for a quarter announced this morning: 241K is the highest number of new Teslas brought to the streets, a 73% increase year over year and higher than analysts were anticipating. Tesla stock has underperformed the broader market so far this year, up only 6%, though it is still up a fantastic 82% from this time a year ago.