After one of the busiest weeks of the year, investors this week will face a slower economics calendar and a busy, but more tame, earnings schedule.
The main economics highlights will come on Tuesday and Friday when the latest JOLTS report — which shows job openings in the U.S. — and a check on consumer sentiment are due out, respectively.
Meanwhile, earnings highlights should include results from Disney (DIS), Twenty-First Century Fox (FOXA), Marriott (MAR), MGM (MGM), Macy’s (M), Nordstrom (JWN), and Nvidia (NVDA).
Disney earnings will be closely tracked for an update on the company’s ESPN unit, which has been at the center of political controversies in recent months as well as tried to combat the secular decline in cable subscribers.
This past week, a deluge of news hit markets though the major averages finished the week little-changed, but higher across the board.
President Donald Trump named Jerome Powell to be his nominee to replace Janet Yellen as Chair of the Federal Reserve. Apple (AAPL) reported earnings that crushed expectations and surged to a record high. House Republicans unveiled the first draft of their tax plan.
And the October jobs report showed 261,000 jobs were added to the economy after a disappointing September number with the unemployment rate falling 4.1%, the lowest since December 2000.
Other news to watch into the start of next week were reports late Friday that Broadcom would unveil a bid to acquire Qualcomm, which would create a $200 billion chip giant. Reports late Saturday that Saudi Arabia had arrested 11 princes, current and former ministers, and billionaire Prince Al-Walled bin Talal also bear watching into the new week.
Economic calendar
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Monday: No major economic data released.
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Tuesday: Job openings and labor turnover survey, September (6.1 million job openings previously); Consumer credit, September ($17.75 billion expected; $13.1 billion previously)
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Wednesday: No major economic data released.
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Thursday: Initial jobless claims (231,000 expected; 229,000 previously)
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Friday: University of Michigan consumer sentiment, November (100.5 expected; 100.7 previously)
Wage growth continues to disappoint
The October jobs report saw the unemployment rate fall to a nearly 17-year low.
And while the headline job gains — 261,000 vs. an estimated 313,000 — were a slight disappointment relative to expectations, it’s clear that the post-hurricane drop we saw in September was just a blip. The U.S. job-creating machine is still in great shape.
But Friday’s report revealed another area where persistent weakness has and continues to plague the labor market. And that is wage growth.