What to Expect in the Week Ahead (STZ, LEVI, LW Earnings; Jobs Report)

Moomoo Breakfast US wrote a column · Oct 1, 2023 19:48

What to Expect in the Week Ahead (STZ, LEVI, LW Earnings; Jobs Report)

The latest data on the U.S. labor market will be the investors' main focus this week, with implications for consumer spending and Federal Reserve policy.

There will also be a handful of notable earnings reports this week. On Tuesday, $McCormick & Co(MKC.US)$ releases quarterly result, followed by $Acuity Brands(AYI.US)$ on Wednesday. $Constellation Brands(STZ.US)$, and $Levi Strauss & Co.(LEVI.US)$ report on Thursday.

On Tuesday, the Bureau of Labor Statistics will release the Job Openings and Labor Turnover Survey, conducted on the last business day of August. The consensus forecast is for 8.8 million job openings, about even with the total from a month earlier.

Then, on Friday, the BLS will release the September jobs report. Economists are forecasting an increase of 170,000 nonfarm payrolls, versus 187,000 in August.

The unemployment rate is seen ticking down to 3.7% from 3.8%. Other economic data to watch this week will include the Institute for Supply Management's Manufacturing Purchasing Managers' Index for September on Monday, followed by the Services equivalent on Wednesday.

Monday 10/2

The Institute for Supply Management releases its Manufacturing Purchasing Managers' Index for September. Consensus estimate is for a 48 reading, slightly higher than the August figure.

The Census Bureau reports construction spending statistics for August. Total construction spending is expected to increase 0.6% month over month to a seasonally adjusted annual rate of $1.98 trillion, which would be a record high.

Tuesday 10/3

$McCormick & Co(MKC.US)$ and $Cal-Maine Foods(CALM.US)$ report third-quarter 2023 results.

The Bureau of Labor Statistics releases the Job Openings and Labor Turnover Survey. Economists forecast 8.8 million job openings on the last business day of August, roughly even with the July data. Job openings are down 27% from the record peak in March 2022 but remain above historical averages. At the September Federal Open Market Committee press conference Federal Reserve Chairman Jerome Powell said that "although the jobs-to-workers gap has narrowed, labor demand still exceeds the supply of available workers."

Wednesday 10/4

ADP releases its National Employment Report for September. The consensus call is for the economy to add 150,000 private-sector jobs, following an increase of 177,000 in August.

The ISM releases its Services PMI for September. Expectations are for a 53.6 reading, almost one point less than in August.

Thursday 10/5

$Constellation Brands(STZ.US)$, $Lamb Weston(LW.US)$, and $Levi Strauss & Co.(LEVI.US)$ hold conference calls to discuss quarterly results.

The Department of Labor reports initial jobless claims for the week ending September 30.

Friday 10/6

The BLS releases the jobs report for September. Consensus estimate is for nonfarm payrolls to increase by 170,000, while the unemployment rate is expected to edge down to 3.7% from 3.8%. Jobs growth has cooled recently from the blistering pace of the past two years. The three-month average through August was a gain of roughly 150,000 compared to an average increase of 438,000 a month for the two years through May 2023.

Sectors Performance