Stock Market Outlook This Week – September 5th to September 9th
Last week was another violently volatile week of trading large-cap stocks and penny stocks. There were several exciting IPOs that drove speculative optimism for retail traders. There was also some major market moving events that took indexes lower. Commentary from many Fed members echoed the hawkish stance on rates. Markets are still pricing in a 75 basis point hike at the next Fed meeting.
Last week, New York Fed PresidentJohn Williams suggested that rates need to reach a benchmark of “somewhat above” 3.5% to slow the economy. “It is going to take some time before I would expect to see any adjustment to rates downward,” Williams said in a Wall Street Journal interview. “We need to have somewhat restrictive policy to slow demand, and we’re not there yet.”
This came shortly after the market reeled from Fed Chair Powell’s Jackson Hole commentary. In our article “Best Penny Stocks To Watch After Powell’s Jackson Hole Speech,” we discussed Powell’s outlook in more detail:
“While the lower inflation readings for July are welcome, a single month’s improvement falls far short of what the Committee will need to see before we are confident that inflation is moving down…In current circumstances, with inflation running far above 2 percent and the labor market extremely tight, estimates of longer-run neutral are not a place to stop or pause…Our aim is to avoid that outcome by acting with resolve now.”
The Fed Chair will “take the stage” once again during the shortened holiday week.
What To Watch In The Stock Market This Week
This week will be a shorter week thanks to the US Labor Day holiday, which closed the stock market on Monday.
Stock Market News & Events For Tuesday, 9/6
Economic data, including ISM employment and business activity, along with composite and services PMI, kick-start things on Tuesday.
Stock Market News & Events For Wednesday, 9/7
Wednesday begins the schedule of Fed speakers, with FOMC member Mester and Vice Chair Brainard speaking after the Red Book data comes out and ahead of Beige Book data.
Stock Market News & Events For Thursday, 9/8
Thursday’s all about jobs data and commodities. Plus, there will likely be the jewel of the week before the stock market opens. More on this is below.
Stock Market News & Events For Friday, 9/9
Friday will also see continued Fed commentary flow from St. Louis Fed member Waller and Kansas City Fed President & FOMC member Esther George.
What Is The Red Book?
Red Book data shows sales-weighted year-over-year same-store sales trends. It can provide signals on consumer spending and short and medium-term trends for retail investors and tracks a wide range of retail categories. Everything from sporting goods and apparel to jewelry and home furnishings is followed closely in the Red Book.[Read More] Best Penny Stocks To Buy Now? 4 To Watch This Month
What Is The Beige Book?
Beige Book data is reported eight times annually and summarizes information on economic conditions from Bank and Branch directors. Ideally, it should show the change in economic conditions since the previously published report and give some sense of regional trends across the 12 Federal Reserve Districts.
Since inflation and interest rates have been in focus, economic conditions and, in turn, economic reports have played a more significant role in the stock market this year.
More Economic Data To Digest
There will be plenty more economic data to digest than Beige Book details. Initial jobless claims and continuing jobless claims come out on Thursday. There are also consumer credit data coming out during power hour in addition to some cues from the energy sector, with crude oil inventories, imports, and gasoline production being delivered just before the lunch hour. Friday caps off a lighter week with wholesale inventories and the US Baker Hughes rig count.
Jerome Powell Speaks On Thursday
All eyes will likely be on another upcoming stock market event this week. Jerome Powell will speak before Thursday’s opening bell. Powell hosts a discussion at the Cato Institute’s 40th Annual Monetary Conference aptly titled, “The State Of Monetary Policy After 40 Years.”
The Institute sets the stage for this event by stating, “With massive U.S. debt and deficits, inflation at a 40-year high, and popular/political pressure for expanding the Fed’s mandate, it’s time to assess the Fed’s performance and future.”
While Powell speaks in the morning, the event continues throughout the day, concluding at 3:40 PM ET. Other notable names participating in conversations and panels include former Secretary of the Treasury Lawrence Summers, former Bank of England Governor Mervyn King, and former member of the Board of Governors, Federal Reserve System, Kevin Warsh.[Learn More] How to Invest in Meme Penny Stocks in 2022
Stock Market Snap Shot
This is just a brief snapshot of the market and not an exhaustive list of big and small events for the week ahead. However, these are some of the higher-profile catalysts that could be on the radar for traders and maybe something to keep in mind heading into the first full week of September.
What trading opportunity is there this week? What stocks to buy now? Fundstrat Managing Partner Tom Lee & other stock market analysts have been reporting on the fact that Jerome Powell & the FED have made it very clear that they will fight inflation at all costs, including a further stock market crash and deeper recession, HOWEVER, an extremely strong jobs market is acting as a buffer between the economy and a bad recession.
What will happen in the stock market this week? How will these top trending stocks: SPY, QQQ, BBBY, GME, AMC, APE, WHLR, DWAC, PXMD, TSLA, AAPL, AMD, NVDA, NFLX, & others trade this week? We also can’t forget about IPO stocks. How will stock market futures open? How to make money trading in the stock market tomorrow is the focus right now.
True Trading Group is hosting a stock market live Stream to answer all trading & stock market questions and to share their Trading & Stock Market Predictions for Tomorrow!
Get ready to learn to trade and profit LIVE with True Trading Group on Monday, 9/5/2022. They host free stock market live trading predictions for the week ahead on YouTube at 8:30 PM ET.