Monday Market Must-Knows: May 29, 2023

In the upcoming trading week, one of the main concerns is the debt ceiling negotiations in the United States. While there is a deal in the making, the situation on Capitol Hill remains chaotic with disagreements between political parties. The deadline for important decisions regarding the economy is approaching, so raising the debt ceiling to stimulate economic growth or implementing cuts to reduce spending are the options. Failure to reach an agreement could result in increased market volatility and the uncertainty of a default on the national debt.

In terms of earnings, the week is relatively light with only 380 companies reporting. Notable names include Hewlett Packard, Salesforce, Viva Systems, Nordstrom, Lululemon, Macy's, Broadcom, Five Below, Dollar General, Dell Computers, and Hormel Foods; however, Friday's session is quiet with fewer announcements.

In addition to debt ceiling negotiations and earnings reports, there is significant economic data to watch in the upcoming week. Employment data, including JOLTS job openings, ADP non-farm employment change, unemployment claims, non-farm employment change, and the unemployment rate, will be released. These announcements, especially the ones on Friday, could cause market volatility. The Federal Reserve's emphasis on employment and achieving full employment is notable, but future job market conditions may be influenced by factors like layoffs, AI advancements, and job replacements, potentially impacting unemployment figures in the months ahead.

Overall, caution is advised due to the ongoing debt ceiling negotiations and the potential market volatility associated with them, as well as the impact of upcoming earnings releases and employment data announcements.

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