Weekly market recap
Friday marked the first trading day of October and the final quarter of 2021. The major averages rose that day on news of a new oral treatment for Covid-19, which boosted stocks tied to the economic reopening.
The $S&P 500 Index (.SPX.US)$finished the month down 4.8%, breaking a seven-month winning streak. The $Dow Jones Industrial Average (.DJI.US)$and the $Nasdaq Composite Index (.IXIC.US)$fell 4.3% and 5.3%, respectively, suffering their worst months of the year.
One of the first hurdles markets face in the new quarter is Friday's closely watched employment report, which could spur the Federal Reserve's decision on when to taper its bond-buying program.
Here's a look at the return of S&P 500 sectors
This week ahead in focus
This week's highlight will be September jobs data on Friday, plus more economic data and several corporate earnings releases and investor events. PepsiCo reports its latest results on Tuesday, followed by Constellation Brands and Levi Strauss on Wednesday and Conagra Brands on Thursday. Marvell Technology and VMware will host investor days on Wednesday and Thursday, respectively. On Thursday, Tesla will hold its annual shareholder meeting. Things could get interesting: An influential proxy advisory firm has recommended that investors vote against the re-election of a pair of directors to Tesla's board, citing excessive compensation.
On Friday, the Bureau of Labor Statistics will release U.S. employment data for September. Economists are forecasting job growth of 425,000 on average, following a 235,000 gain in August. The unemployment rate is expected to tick lower to 5.1%, from 5.2%. Other economic data out this week include the Institute for Supply Management's Services Purchasing Managers' Index for September and the Bureau of Economic Analysis' light-vehicle sales report for September, both on Tuesday.
Monday 10/4
$Amgen (AMGN.US)$hosts a conference call to discuss new clinical-trial data for its portfolio of inflammation drugs.
Tuesday 10/5
$PepsiCo (PEP.US)$reports third-quarter fiscal-2021 results.
The Bureau of Economic Analysis reports light-vehicle sales for September. Cox Automotive forecasts a seasonally adjusted annual rate of 12.1 million vehicles sold, one million fewer than in August. If the estimate proves correct, it would be the slowest pace of auto sales since May of 2020 and down 26% from last September. Car sales have been hampered by a lack of new-vehicle inventory.
The Institute for Supply Management releases its Services Purchasing Managers' Index for September. Consensus estimate is for a 59 reading, more than two points below the August figure.
Wednesday 10/6
ADP releases its National Employment report for September. Economists forecast an increase of 475,000 jobs in private-sector employment, after adding 374,000 jobs in August.
$Constellation Brands (STZ.US)$and $Levi Strauss & Co. (LEVI.US)$report earnings.
$Costco (COST.US)$reports sales data for September.
$Marvell Technology (MRVL.US)$hosts a virtual investor day.
Thursday 10/7
$Conagra Brands (CAG.US)$and $Lamb Weston (LW.US)$hold conference calls to discuss quarterly results.
$Leidos (LDOS.US)$hosts an investor day.
$Vmware (VMW.US)$holds a financial analyst meeting. CEO Raghu Raghuram will be among the management team members on hand to discuss the company's strategy and products.
$Tesla (TSLA.US)$hosts its annual meeting of shareholders. Proxy advisory firm Institutional Shareholder Services recently recommended that investors vote against the re-election of James Murdoch and Kimbal Musk to Tesla's board. ISS cited concerns about excessive compensation to named executive officers and nonexecutive directors. James Murdoch is the son of media mogul Rupert Murdoch, the executive chairman of News Corp, which owns Barron's. Kimbal Musk is the brother of Elon Musk, Tesla's CEO.
The Department of Labor reports initial jobless claims for the week ending on Oct. 2. For September, jobless claims averaged 340,000 a week, the lowest since the onset of the pandemic, but still elevated compared with prepandemic levels.
Friday 10/8
The Bureau of Labor Statistics releases the jobs report for September. The economy is forecasted to have added 425,000 positions, after a 235,000 increase in August. The unemployment rate is expected to tick lower to 5.1% from 5.2%. There is still a shortfall of roughly 5.3 million jobs since the beginning of the pandemic.
Source: CNBC, Barron's