The Week Ahead on Wall Street

Economic Data Releases

Today, existing home sales for October are released by the National Association of Retailers. This metric tracks the sales of previously owned homes in a given month. In September, existing home sales gained 7% driven by a dip in interest rates in August. Interest rates have been rising since then, with applications for refinances declining. October’s report should give investors more clarity as to where the real estate market is heading.

Tomorrow, Markit’s Manufacturing and Services PMIs for November are released. The Purchasing Managers Indexes take a pulse of manufacturing and services activity in a given month. This data is compiled by the Institute for Supply Management (ISM) and is based on a monthly survey which is sent to executives at over 400 companies. The manufacturing PMI slumped to a 16-year low in October with factories still experiencing delays getting materials. Given the current supply-chain difficulties, the reading may not be any better in November.

On Wednesday, there is a bevy of economic data being released ahead of Thanksgiving. Investors will be paying close attention to initial and existing unemployment claims for the week earlier. The job market has been steadily improving as the number of COVID-19 cases starts to slow and people return to work. Last week the number of people seeking unemployment hit a new pandemic low of 290,000.

Also Wednesday, the Consumer Sentiment Index for November is released by the University of Michigan. This data point takes a pulse of how consumers are feeling about the economy and their finances. Consumer spending has held up in the face of inflation, but it’s not clear how long consumers will be willing to pay elevated prices. Consumer confidence rebounded in October after three months of declines. Economists pointed to fewer COVID-19 cases for the improvement in sentiment.

On Thursday and Friday there is no economic data being released because of Thanksgiving.

Earnings Reports

Today, Zoom Communications (ZM) reports quarterly earnings. The pandemic darling has seen usage slow down as more people return to work in-person. Zoom recently announced it would start showing ads to customers on the free version of its service. This is a big change for the video conferencing company and investors will want to learn more about the initiative.

Tomorrow, Nordstrom (JWN) reports quarterly earnings. Aiming to reach new customers, the department store operator just inked a deal with the sports apparel company Fanatics. Through the partnership, Nordstrom will sell licensed sports gear for the first time.

Also Tuesday, American Eagle (AEO) reports quarterly earnings. The speciality retailer is expected to post strong results, driven by robust demand online and in stores. Investors will want to hear more about American Eagle’s outlook heading into a holiday season which could be impacted by inflation and pent-up demand.

JM Smucker (SJM) also weighs in with quarterly earnings Tuesday. The food company is spending $1.1 billion to build a new plant in Birmingham, Alabama. The plant will employ about 750 people, producing JM Smucker’s Uncrustables products, starting in 2025.

Wednesday, be on the lookout for earnings from Deere (DE). Last week the farm equipment company reached a deal with 10,000 UAW workers who have been striking for several weeks. Workers get a one-time bonus and a 10% pay hike over the course of six years.

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