What to Expect in the Markets This Week

Updates on how Americans are feeling about the economy, and the labor market.

Volatility returned to U.S. equity markets with a vengeance this week, sending the VIX to its highest levels since the meme stock craze in January, following the emergence of the omicron variant of COVID-19 and its arrival in the U.S. Late on Thursday, lawmakers passed a short-term spending bill to fund the government and avert a shutdown ahead of a Friday deadline. 

Next week, investors can expect an update on how Americans are feeling about the economy with the IBD/TIPP Economic Optimism Index and the University of Michigan’s Consumer Sentiment Index for the month of December, as well as details on labor market conditions with the Labor Department’s JOLTS report.

Key Takeaways

  • The Logistics Managers Index (LMI) report for November will be released on Monday.
  • The Labor Department will release its job openings and labor turnover survey for October on Wednesday.
  • The University of Michigan will release the preliminary reading of its Consumer Sentiment Index for December on Friday.

Here are the returns for major asset classes and Bitcoin year-to-date:

Events Calendar:

Monday December 6:

  • MongoDB (MDB) and GitLab (GTLB) report earnings.
  • LMI Logistics Managers Index (November)
  • China Exports and Imports (November)
  • Japan Household Spending (October)

Tuesday December 7:

  • Autozone (AZO) reports earnings. 
  • U.S. Nonfarm Productivity, Final (Q3)
  • U.S. Exports and Imports (October)
  • IBD/TIPP Economic Optimism (December)

Wednesday December 8:

  • UiPath (PATH), GameStop (GME), Campbell Soup Company (CPB), Udemy (UDMY), and Rent the Runway (RENT) report earnings. 
  • JOLTS (October)
  • China Consumer Price Index (November)
  • China Producer Price Index (November)
  • India RBI Interest Rate Decision 

Thursday December 9:

  • Costco (COST), Broadcom (AVGO), Lululemon (LULU), Chewy (CHWY), and Hormel Foods (HRL) report earnings. 
  • WASDE Report
  • Japan Producer Price Index (November)

Friday December 10:

  • U.S. Consumer Price Index (November)
  • Michigan Consumer Sentiment Index, Preliminary (December)
  • India Inflation Rate (November)
  • India Industrial and Manufacturing Production (October)

Supply Chain Logistics

The Logistics Managers Index (LMI) will kick off the week’s data releases on Monday, with its report for the month of November. The index measures logistics activity in the United States, based on a survey of supply chain professionals, and is expected to show continued gains compared to pandemic lows, despite ongoing challenges. In October, the index registered a reading of 72.6, 40 basis points higher than in September, as transportation utilization and pricing increased. Any number above 70 indicates a “significant expansion.” 

Consumer Sentiment and Economic Optimism

We’ll also get an update on how Americans are feeling about the economy with the IBD/TIPP Economic Optimism Index on Tuesday and the preliminary reading of the University of Michigan’s Consumer Sentiment Index for the month of December on Friday. Last month, the index hit a 10-year low on consumer concerns about inflation, with one in four Americans surveyed saying that rising prices had impacted their quality of life.

Jobs Jolt

The U.S. Department of Labor will release its job openings and labor turnover survey (JOLTS) for the month of October on Wednesday. The survey measures job vacancies, and is often used as an indicator of trends in the U.S. labor market. In September, the number of Americans who left their jobs had soared to a record high, while job openings in the U.S. remained near all-time highs. The sectors with the largest increases in job openings were health care and social assistance.