Week Ahead on Wall Street

Economic Data

The Chicago Purchasing Manager Index for February is due today. This measures the performance of the manufacturing and non-manufacturing sector in the greater Chicago area. January’s index came in at 65.2, which was up from 64.3 in December. January’s index beat expectations and was the highest recorded in three months. Also note the US Department of Commerce will release its advance report on January’s trade in goods.

Tomorrow, January construction spending is due. In December 2021 construction spending jumped 9% from a year earlier. Construction sometimes slows during the winter months and the sector has also been negatively affected by delays in terms of materials and supplies. Markit’s final adjustment to this month’s manufacturing PMI and the Institute for Supply Management’s manufacturing index for February are also set for release.

Wednesday, ADP will publish its employment report for February, which provides a look at private hiring in the US. In January companies cut 301,000 jobs. This was a surprise given the fact analyst estimates initially called for a gain of 200,000. Leisure and hospitality accounted for over half of the lost jobs. It marked the first net job loss since December 2020, which analysts blamed on the Omicron variant. The Federal Reserve will also publish its Beige Book.

Thursday, initial jobless claims are due. Last week’s number hit a 52-year low, coming in at 232,000. That was a 17,000 decline from the previous week and means the fewest amount of Americans are collecting unemployment since 1970. Continuing jobless claims will also be reported, as well as January’s factory orders, and the ISM services index for February.

More jobs data is on the way Friday in the form of nonfarm payrolls and the unemployment rate for February. The US Bureau of Labor and Statistics surveys both private and government employers to determine these figures. Nonfarm payrolls rose by 467,000 in January, while the unemployment rate increased to 4%. Also,be on the lookout Friday for this month’s report on average hourly earnings, and consumer credit for January.

Earnings

Today, video communications service Zoom (ZM) will share its most recent quarterly results. Since its peak during the pandemic the stock has fallen by around 75%. Analysts argue this is a result of investors pivoting away from “work at home” companies. Still, Zoom beat expectations on the top and bottom lines when it last posted earnings in late November.

Tomorrow, retail giant Target (TGT) will hand in its most recent report card. The company enjoyed a rise of its own throughout the pandemic and, so far, it’s been able to sustain it. Some analysts predict Target will post its highest operating income of the last 10 years. This comes as many consumers have been taking advantage of the retailer’s same-day delivery option.

Wednesday, Dollar Tree (DLTR) will post quarterly earnings. The discount retailer last shared results in November, which were largely in line with industry expectations. Its Q3 2021 earnings were down 31% year-over-year. Dollar Tree announced plans at that time to increase prices in 2022, with a median of $1.25 planned by early this year.

Thursday, grocery chain Kroger (KR) is set to post its most recent quarterly earnings before the market opens. Its last report topped Wall Street estimates for both earnings and revenue. Sales were up 7.2% compared to the same quarter in 2020. The Cincinnati-based Kroger recently announced plans to expand its online grocery business into Oklahoma City, opening in the state for the first time.

Friday, Bitcoin mining company Cipher Mining (CIFR) will hand in its report card for its most recent quarter. Analysts note the extreme volatility observed in the cryptocurrency market has affected mining stocks as well. Cipher Mining’s most recent earnings report showed revenue had grown by 4.1% during the first nine months of 2021.

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