Weekly Market Outlook
Tariff Tensions
Tariff concerns weighed on market sentiment on Monday as President Trump's tariffs on Canada, Mexico, and China took effect on Tuesday, February 4th. Tariffs of 25% and 10% will be imposed on Canadian and Chinese goods, respectively, over fentanyl and illegal migration issues. Economists warn that the tariffs could stoke inflation.
Job Market Data and Corporate Earnings
In the week ahead, investors will monitor the January jobs report, due out on Friday. The report is expected to show an increase of 150,000 jobs, down from December's 256,000. The unemployment rate is projected to remain steady at 4.1%.
The week will also feature a slew of corporate earnings reports from companies including Amazon, Alphabet, Chipotle, and Eli Lilly. Analysts anticipate strong earnings growth, with the S&P 500 pacing for a 13.2% year-over-year increase in the fourth quarter.
ISM Manufacturing PMI
The Institute for Supply Management (ISM) will release its Manufacturing PMI on Monday. The index has been in contraction for over two years, but economists believe that may be turning around. A reading above 50 would signal an expansion in the manufacturing sector, which could boost stock prices.
Weekly Economic Calendar
Monday
- S&P Global US Manufacturing PMI
- Construction Spending
- ISM Manufacturing
Tuesday
- Job Openings
- Factory Orders
- Durable Goods Orders
Wednesday
- MBA Mortgage Applications
- ADP Private Payrolls
- S&P Global US Services PMI
- ISM Services Index
Thursday
- Challenger Job Cuts
- Initial Jobless Claims
Friday
- Nonfarm Payrolls
- Unemployment Rate
- Average Hourly Earnings
- University of Michigan Consumer Sentiment Survey