Whether you were trading penny stocks or not, it was hard to ignore the stock market crash continuing to put in new lows. Since the September Fed Meeting, selling pressure has accelerated thanks to renewed fears of a more significant recession looming. Now that September and the 3rd quarter are in the rearview, investors are eager to see what the year’s final quarter may bring. More potential rate hikes, the next round of corporate earnings, and a slew of Fed speak are sure to move markets.
Last week was one of the most bearish weeks in the stock market this year. Volume accelerated into the second half on Thursday and Friday. Major indexes (and their corresponding ETFs) slipped to fresh lows. The S&P 500 ETF (NYSEARCA: SPY), Invesco Nasdaq ETF (NASDAQ: QQQ), and SPDR Dow Jones ETF (NYSEARCA: DIA) were no match for the heavy selling pressure. All tapped levels not seen late-2020.
In the meantime, economic data will be in focus, along with monetary policymakers’ comments being watched closely. The week ahead kicks off the start of corporate earnings for several big names. Revenue and EPS may be what initially garner attention. But it will undoubtedly be leadership commentary and guidance (or lack thereof) that will dictate the reaction in the market.
Last week we saw this most notably from Nike (NYSE: NKE) earnings. Its sales increased, but supply chain and inventory issues dampened the bottom line in its fiscal first quarter. Overstocked inventory has also led some to speculate on more aggressive discounts in the near term to lighten the load. NKE stock dumped over 10% following the report. That was also in light of better-than-expected profit and revenue for the quarter.
This week doesn’t look like it’s going to be any less busy, especially regarding Fed speak and economic data. What’s happening in the stock market this week that you should be aware of? Here’s a list of stock market events that may sway sentiment this week:
While U.S. market events will headline most day’s activity, we’re going to include some global events that could add some spice to the mix. Monday kicks things off right away with Manufacturing PMI and Manufacturing Employment data. This will come after Eurozone and UK Manufacturing PMI are released before the opening bell.
The session will see Bank Of England Monetary Policy Committee Member Mann speaking. Still, the focus will likely be on late-breaking commentary from FOMC Member Williams that could drive sentiment during Power Hour trading.
Tuesday is a much more busy period for speaking engagements by Fed members and members of the ECB. We’ll also get economic data, including durable goods for August, factory orders, the JOLTs Job Openings report, and total vehicle sales. The roster of Tuesday’s speaking engagements is stacked with ECB Enria giving commentary at 8 am ET, followed by FOMC Williams and Mester speaking during the 9 am ET hour. ECB President Lagarde will even out the day when she hosts a discussion with students at an event organized by the Central Bank of Cyprus.
Wednesday’s OPEC meeting will keep energy traders on edge as members weigh cutting oil output. Meetings have been hosted online, but this may be the first in-person meeting since March 2020. As this meeting begins at 6 am ET, a few hours later, the markets will see the latest ADP Nonfarm employment data and August trade balance. This is in addition to September Services PMI, ISM Non-Manufacturing and Employment PMI, and crude oil inventories. The multiple catalysts related to energy could be something to keep in mind if oil and gas penny stocks are on your watch list heading into October.
More Eurozone and UK data are set for release on Thursday. UK Construction PMI and Eurozone Retail Sales for August get delivered right at U.S. markets open for premarket trading. As we get closer to the 9:30 am ET opening bell, initial and continuing jobless claims take the spotlight and could set the tone for the early morning session. Later on Thursday, we’ll see Fed Governor Cook, Fed Board Of Governors member Waller and the FOMC’s Mester giving comments. Since Waller and Mester speak after the market closes, their words could set the stage for Friday’s first move.
On a much lighter day of stock market news and events, Friday will see more commentary from FOMC member Williams. There’s also more employment data to digest, including average hourly earnings, nonfarm payrolls, participation & unemployment rates, and private nonfarm payrolls. Finishing out the day, the Baker Hughes rig count could also take some of the attention during Friday’s afternoon session, which may or may not play off of the week’s earlier energy-related events.
This is a quick snapshot of what to watch in the stock market this week. These are some catalysts that could shift sentiment and dictate the overall trends. Will the stock market crash continue, or will a bottom finally get put in? That’s the biggest question on the minds of investors and traders going into the first week of October & Q4.
No matter what Stock Market news outlet you watch or listen to, recession, inflation, rate hike, and even “the next Great Depression” are thrown into the mix. What are you supposed to do now? The short answer is to take a deep breath and focus.
NOW is NOT the time to be fearful.
NOW is NOT the time to throw caution to the wind either.
Many call this a major historic event for the stock market and a period where real generational wealth will be made. It would help if you did everything in your power to make sure you’re on the right side of history, and it starts with the proper stock market education, trading game plan, and proper investing strategy to do that.
Whether you’re Day Trading, Swing Trading, Long Term Investing, Options Trading, or Futures Trading, the information we discuss on the stock market today could help make you money as soon as tomorrow morning! Thanks to the volatility in the stock market for 2022, many traders and investors are asking the same questions:
If you have ever wondered about how to start investing in the stock market, how the stock market works, asked yourself if this is a stock market for beginners, or wondered how to play this stock market game, it’s time to pay attention.
True Trading Group is hosting a stock market live stream that will answer those very questions and a lot more. Plus, they give their outlook and stock market predictions for the week ahead. Get Ready To Learn To Trade & Profit LIVE with True Trading Group on YouTube on Sunday, 10/2/2022, at 8:30 pm ET.
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