Monday's Market Minute: Investors Brace For Another Volatile Week

With the focus to begin the week on headlines regarding the health and well-being of the financial system, I think one thing we may anticipate is potential for more intraday swings across markets. Today, the news that First Citizens Bank is going to purchase the assets of Silicon Valley Bank is helping provide stability. But it’s not just the banks and that whole narrative to keep an eye on this week; let’s take a market minute to identify what else you need to stay ahead of.

First, in terms of economic data, Monday is a slow start to a week that’s packed full of housing data. Tuesday, we have Case-Shiller and the FHFA home price index, Consumer Confidence and the Richmond Fed Manufacturing Index. On Wednesday, we’ll see Pending Home Sales; Thursday we have GDP and Jobless Claims. Friday, Personal Income and Spending, Chicago PMI, and Consumer Sentiment will top the list. We also have a handful of Fed speakers to keep an eye on throughout the week: with the blackout period over, investors will be looking for insight in terms of the likelihood of further rate hikes to come. 

Not much in terms of earnings, but I did notice Carnival (CCL), Lululemon (LULU), Lovesac (LOVE), McCormick (MKC), Micron (MU), and RH (RH) will open their books to investors. It will be a couple of weeks still before the next round of earnings is back on the table, so plenty of time for speculation about what’s to come there.

In addition, this week keep an eye on the U.S. dollar, which has struggled as of recent vs the yen and the euro as the ECB’s objectives seem a bit more clear than the FOMC’s, boosting the euro. Also we have crude oil hovering around $70 a barrel, comfortable at current levels, gold selling off this morning back to $1955, and Treasuries still suggesting a cut by the Fed before the end of the year.

All of this combined adds to the speculation and intraday price activity we’ve been seeing, and I expect that to continue this week.

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