Markets await key economic and earnings data

The upside down world of overnight stock market investing continues into the pre-market for a new week. All three major indices are trading in the red – the Dow -70 points, the S&P 500 -10 and the Nasdaq -60 points – after a strong wave of support on Friday, which posted gains of nearly 1% to almost 1 , 5%, according to the index. Nonetheless, a 2% drop overall is what we saw in all of the trading last week.

We don’t see any new data until today’s opening bell, but later this morning we expect Factory orders and a review of Basic capital equipment orders, both for August. A rebound is expected in this data, although supply chain constraints have been a fairly constant headwind for much of the Grand Reopening and may continue in the new orders data. That said, demand for goods is expected to remain strong, implying future growth in orders even if today’s data is poor.

It is also the week of employment. Wednesday’s private sector wage bill of Automatic data processing The US government’s ADP and Friday non-farm wages are highly anticipated, especially after a surprisingly weak employment report in August from the US government. Bureau of Labor Statistics (BLS). For the title of ADP, analysts expect a gain of 430,000 new jobs in the private sector having been created in September; 485K are expected from the BLS report.

In addition, with the Unemployment rate at the post-Covid low currently and expected to drop further to 5.1% on Friday, it might be important for us to look at subtitle numbers like labor force participation, which has remained stubbornly stable, so even as wage growth is finally progressing. Currently, the United States has lost about 5 million more jobs from February 2020, the last reported month before the pandemic.

Much has been heard about this slow growth in the workforce, including federal government benefits that too easily prevent individuals from returning to work. But probably more specific – especially with those programs largely completed and wages rising to significantly higher levels since pre-Covid – is the fear that the Delta variant will infect even those who have been vaccinated.

But with the Delta variant on the decline, as well as Merck MRK announced on Friday that a pill to keep symptoms of Covid low enough to keep infected people out of the hospital (and morgue), it appears that this barrier to a more fully functional workforce is also falling. . It was difficult to determine employment numbers month-to-month (or even week-to-week, with jobless claims), but the bias for this week’s numbers can be upward on the basis of these points.

You’re here TSLA shares are up 2.8% in today’s pre-market on a record number of deliveries for a quarter announced this morning: 241K is the highest number of new Tesla to hit the streets, a 73% increase year over year and higher than analysts expected. Tesla stock has underperformed the overall market so far this year, up just 6%, although it is still up 82% from the same period a year ago.

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