The Market Week Ahead: Dec. 3 – Dec. 7

 

Dec. 3  – Today’s trade-war relief rally adds to last week’s gains, which is a win after how markets performed in October and November.

That said, we’re not out of the woods yet. We wrote Friday about all the technical hurdles the market will have to clear on the way back up. Most immediately, for the S&P 500 at least, is the 2,800 level, which the market tested and failed at this morning. 

Then there are the unknowns from the trade deal itself. Among the items not yet clear is when the cease-fire is scheduled to end. Initial reports seemed like President Trump and Chinese Premier Xi had agreed to a 90-negotiating period from the date of the agreement, which would have been Saturday, Dec. 1. Reports out today suggest that the imposition of new tariffs has been delayed by 90 days, meaning new duties are suspended for 90-days after the first of the year. 

Also in question: Will China be dropping auto tariffs as President Trump tweeted this morning? What is the make up of the agriculture and energy products China will be buying, and how much will they buy?

Those are all just questions about the preliminary deal, but that seems like an ominous bit for foreshadowing for the main negotiations, which will reportedly be led on the U.S. side by Robert Lighthizer. Lighthizer is pro-tariff and has been a China hawk in the past, so it will be interesting to see how negotiations progress.

Economic Events this Week

The monthly payrolls report is the biggest news on the calendar. It’s going to take a big surprise to really move the market though.

  • Wednesday
    • 10:30 a.m. – Crude Inventories
  • Thursday
    • 8:30 a.m. – Trade Balance
  • Friday
    • 8:30 a.m. – Nonfarm Payrolls
    • 8:30 a.m. – Avg. Hourly Earnings
    • 8:30 a.m. – Unemployment Rate
    • 8:30 a.m. – Average Workweek

Earnings Reports this Week

There’s nothing earth shattering on the earnings calendar this week. A couple of retail names, but it seems unlikely any of these will have much effect on the broader market.

Monday:

  • Before the bell: FNSR
  • After the bell: COUP, SMAR

Tuesday:

Wednesday:

Thursday:

  • Before the bell: KR, TTC, THO, MIK, SIG
  • After the bell: AVGO, ULTA, COO, DOCU, SAIC

Sector Analysis 

Strong Sectors past Month

These sectors are up 5% or more in the last 20 trading days:

  • Solar
  • Airlines
  • Health Care
  • Utilities

Weak sectors past month

These sectors are down 5% or more in the last 20 trading days:

  • Oil
  • Volatility
  • Oil Services
  • Oil & Gas Exploration
  • Commodities
  • Coal
  • Steel

Strong sectors past five trading days

These sectors are up 3% or more in the last five trading days.

  • Internet
  • Technology
  • Semiconductors
  • Biotech
  • Nasdaq 100
  • Consumer Discretionary
  • Robotics & Automation
  • Medical Devices
  • Dow Jones Industrial Average
  • Solar
  • Health Care
  • Cyber Security
  • S&P 500
  • Energy
  • Industrals
  • Retail
  • Financials
  • Airlines
  • Homebuilders
  • Materials
  • Oil & Gas Exploration
  • Utilities
  • Banks
  • Real Estate
  • Regional Banks
  • Insurance

Weak sectors past five trading days

These sectors are down 3% or more in the last five trading days.

  • Volatility

Bobby Raines

Bobby Raines

Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at braines@marketintelligencecenter.com or follow him on Twitter: @BRatMICenter.

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