What to see in the markets the week of May 31

U.S. stocks rebounded last week Ends seven-week losing streak The S&P 500 and Nasdaq, while the Dow rose for the first time in eight weeks.

The gains ended the S&P 500’s longest weekly loss in more than a decade after the index entered bear market territory. All three major indexes posted weekly gains of at least 5%, boosted by a string of upbeat economic data and more upbeat earnings reports from the retail sector.

Only 3 times in history (1970, 1980, and 2001) has the S&P 500 ended such a long streak of declines, and in the next 12 months, the index rose 33% twice, According to data from LPL Financial.

“Of course, to be honest, [performance after] This [decline] 2001 was a rough sled,” LPL’s Ryan Detrick noted. Over the next six months, the S&P 500 fell another 14%.

Wall Street will be closed on Monday to mark the Memorial Day holiday.

Investors are expected to take their cues from a slew of key jobs data when trading resumes on Tuesday in the holiday-shortened final week of May.

The Labor Department’s closely watched employment report is set to provide a snapshot of the U.S. employment situation as concerns over uncertainty about the economic outlook intensify.May jobs data expected to reflect slowing hiring from the U.S. Top pre-reads for 428,00 jobseconomists hoped to add or create 325,000 jobs last month, according to a Bloomberg consensus estimate.

With some big companies reporting inflation-related profit pressures and seeing their stocks slide in recent weeks, market participants have grown increasingly wary that companies may lay off workers and suspend hiring to cut costs

A hiring sign at TJ Maxx on May 16, 2022 in Annapolis, Maryland.  (Photo by Jim WATSON/AFP) (Photo by JIM WATSON/AFP via Getty Images)

A hiring sign at TJ Maxx on May 16, 2022 in Annapolis, Maryland. (Photo by Jim WATSON/AFP) (Photo by JIM WATSON/AFP via Getty Images)

In terms of employment, investors also have ADP report on private wages – The predecessor to the government’s main employment report – the Department of Labor’s Job Openings and Labor Turnover Survey, or JOLTS, and weekly jobless claims in the queue.

The consumer confidence index due on Tuesday will be another important gauge of economic sentiment, with investors closely watching the resilience of consumers amid ongoing discussions of a recession.

In recent trading days, the positive A batch of quarterly results from major retailers That at least temporarily eased concerns that inflation headwinds could weigh on margins.

“Consumers suddenly look more vulnerable based on their earnings, as well as other trends such as declining consumer confidence and real incomes,” Brad McMillan, chief investment officer at Commonwealth Financial Network, said in a note. “It’s true for consumers, it’s true for the economy, and it’s true for the end market.”

NEW YORK, NY - MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. Markets rose early Monday after a week of sharp losses.  (Photo by Spencer Platt/Getty Images)

NEW YORK, NY – MAY 23: Traders work on the floor of the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. Markets rose early Monday after a week of sharp losses. (Photo by Spencer Platt/Getty Images)

In fact, if the company’s forecast holds true, macroeconomic pressures could be more pronounced in the second-quarter results.

From March 15 to May 24, the word “inflation” was mentioned at least once in 398 earnings calls held by S&P 500 companies. Research by FactSet shows thata similar number – 338 – referred to “supply chain” at roughly the same time.

Additionally, the S&P 500 reported earnings growth of 9%, the weakest since the fourth quarter of 2020, according to FactSet, and 68 companies tracked by the index provided negative EPS guidance for the first quarter, the highest rate since 2019. The highest level since the end of the quarter.

“If the economy is nearing the door of a recession, layoffs will climb further, now ruling out further layoffs in the coming weeks and months,” Christopher Rupkey, chief economist at FWDBONDS, said in a recent report. It’s too early.” “High-flying tech companies plunging stock prices will force management to tighten their belts, and for most companies, the biggest expense is always labor.”

Earnings season is coming to an end, but more reports will be released over the four-day week, with companies including Salesforce.com (customer relationship management), Playstation (GME) chewy (CHWY) and HP (hyperbaric) is set to report quarterly results.

Eddie Ghabour, co-founder and managing partner of Key Advisors Group, told Yahoo Finance Live: “In our view, this is nothing more than a bear market rally.” The volume is light and there isn’t much conviction.

Ghabour also detailed that the data that led to the sharp sell-off in the stock market over the past few weeks was from the first quarter, and that the current quarter could be worse, warning that “the market will be very dangerous for the next few months.”

Economic Calendar

on Monday: Memorial Day. There are no major reports scheduled for release.

Tuesday: FHFA house price indexMoM, March (2.0% expected, 2.1% last month); house price purchase indexmonth-on-month, the first quarter (3.3% in the previous quarter); S&P CoreLogic Case-Shiller 20 City Composite IndexMoM, March (1.90% expected, 2.39% last month); S&P CoreLogic Case-Shiller 20 City Composite Indexcompared to the same period last year, March (19.85% expected, 20.20% last month); S&P CoreLogic Case-Shiller U.S. National Home Price Indexcompared with the same period last year, in March (19.80% in the previous month); MNI Chicago Purchasing Managers’ IndexMay (55.5 expected, 56.4 last month); Conference Board Consumer Confidence IndexMay (103.5 expected, 107.4 last month); Current status of the conferenceMay (152.6 last month); Conference Committee expectationsMay (77.2 on previous reading); Dallas Fed Manufacturing ActivityMay (1.5 expected, 1.1 last month)

Wednesday: MBA Mortgage Applicationthe week ended May 27 (-1.2% the previous week); S&P Global U.S. Manufacturing PMIMay final result (57.5 expected, 57.5 last month); construction expensesMoM, April (0.6% expected, 0.1% last month); Manufactured by ISMMay (54.5 expected, 55.4 last month); ISM price paidMarch (80 expected, 84.6 last month); ISM new orderMay (53.5 last month); ISM employmentMay (50.9 last month); Bump job openingsApril (expected 11.4 million, 11.549 million last month); WARDS total vehicle salesMay (expected 14.3 million, 14.29 million last month); Federal Reserve releases Beige Book

Thursday: Challenger layoffsYoY, May (6.0% last month); ADP employment changeMay (300,000 expected, 247,000 last month); non-agricultural productivityQ1 final results (-7.5% expected, 7.5% last month); unit labor cost Q1 final results (11.6% expected, 11.6% final); Initial jobless claimsfor the week ending May 28 (210,000 expected, 210,000 the week before); ongoing claimsfor the week ended May 21 (1.346 million expected, 1.346 million the week before); Factory orders excluding shippingApril (2.5% last month, revised to 2.1%); factory orderApril (0.7 expected, 2.2% last month, revised to 1.8%); Durable Goods OrderApril final results (0.4% expected, 0.4% last month); Durable goods excluding transportApril final result (0.3% last month); Non-defense capital goods orders excluding aircraftApril final result (0.3% last month); Transportation of non-defense capital goods excluding aircraftApril final results (0.5% expected, 0.8% last month)

Friday: Nonfarm payrolls changeMay (325,000 expected, 428,000 last month); Changes in private wagesMay (303,000 expected, 406,000 last month); Manufacturing Payroll ChangesMay (37,000 expected, 55,000 last month); unemployment rateMay (3.5% expected, 3.6% last month); average hourly earningsMoM, May (0.4% expected, 0.3% last month); average hourly earningsYoY, May (5.2% expected, 5.5% last month); Average weekly working hours for all employeesMay (34.6 expected, 34.6 last month); labor force participation rateMay (62.3% expected, 62.2% last month); underemployment rateMarch (7.0% last month); S&P Global Manufacturing Purchasing Managers’ IndexMay final result (53.5 expected, 53.5 last month); S&P Global U.S. Composite PMIMay final result (53.8 expected, 53.8 last month); ISM Service Index (56.5 expected, 57.1 last month)

Earnings Calendar

on Monday

Memorial Day. There are no major reports scheduled for release.

Tuesday

Before the market opens: Kirkland’s (Kirk)

After market close: life value (hyperbaric), Salesforce.com (customer relationship management), Victoria’s Secret (VSCO), charging point (Cogeneration), Ambarella (MBA)

Wednesday

Before the market opens: There are no major reports scheduled for release.

After market close: game station (GME), chewy (CHWY), polyvinyl alcohol (polyvinyl alcohol), Hewlett Packard Enterprise (HPE), pure storage (PSTG), American superconductor (AMSC)

Thursday

Before the market opens: Hormel Foods (Human Resources Lab)

After market close: Lululemon (Lulu), Octa (OKTA)

Friday

There are no major reports scheduled for release.

Alexandra Semenova is a reporter for Yahoo Finance.Follow her on Twitter @alexandraandnyc

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