What to Expect For Week of March 11 – 15, 2024

As we step into the second week of March, the financial world is poised for several key events and releases that could sway markets and investor sentiment. From inflation data to corporate earnings reports, here’s a comprehensive overview of what to anticipate in the coming days.

Economic Indicators on the Radar

Consumer Price Index (CPI) Report

One of the most closely monitored economic indicators, the Consumer Price IndexThe Consumer Price Index is a measure of the average price level of a basket of goods and services that are commonly consumed by households. More (CPI) report for February, is set to be unveiled on March 12, 2024, at 8:30 AM ET. Economists are anticipating a month-over-month increase of 0.4% in the headline CPI, with a more modest 0.3% rise once volatile food and energy categories are excluded. Inflation is expected to show a 3.1% year-over-year increase for the month. The implications of these figures extend beyond mere statistical data, potentially influencing investor expectations regarding interest rates.

Other Economic Reports

Alongside the CPI report, investors will also be scrutinizing the release of the Producer Price Index (PPI) report, the retail sales report, and the latest consumer sentiment data from the University of Michigan. These reports collectively offer insights into the health of the economy and consumer behavior, which in turn can inform investment decisions. The PPI report will be released on March 14, 2024, at 8:30 AM ET.

Shifting Interest Rate Expectations

The confluence of these economic reports may prompt investors to reassess their interest rate outlook. Currently, institutions like Goldman Sachs are eyeing potential rate cuts from major central banks including the Federal Reserve, European Central Bank, Bank of England, and Bank of Canada as early as June. However, uncertainties persist as central bankers remain cautious about offering explicit guidance too far into the future. Many investors anticipate that softer payroll data and a continuation of disinflationary trends could pave the way for earlier rate reductions by the Federal Reserve, potentially steering the economy towards a soft landing.

Market Volatility and Triple Witching Day

Adding to the intrigue, the stock market is expected to experience heightened volatility towards the end of the week, particularly on March 15, 2024, which marks triple witching day. This phenomenon involves the simultaneous expiration of stock options, stock index futures, and stock index options contracts, often resulting in increased trading activity and price fluctuations.

Earnings Calendar Highlights

Corporate earnings reports also take center stage next week, offering a glimpse into the financial performance and outlook of various companies. Here are some notable earnings releases scheduled throughout the week:

Monday, March 11

• Oracle (ORCL)
• Casey’s General Stores (CASY)
• Asana (ASAN)

Tuesday, March 12

• Kohl’s (KSS)
• On Holding (ONON)
• International Game Technology (IGT)

Wednesday, March 13

• Dollar Tree (DLTR)
• Petco Health and Wellness (WOOF)
• Lennar (LEN)
• Williams-Sonoma (WSM)

Thursday, March 14

• Dollar General (DG)
• Dick’s Sporting Goods (DKS)
• Adobe (ADBE)
• Blink Charging (BLNK)
• Ulta Beauty (ULTA)

Friday, March 15

• Jabil (JBL)

These earnings reports, spanning a diverse array of sectors, will provide valuable insights into consumer behavior, corporate performance, and broader economic trends.

Final Thoughts

As we prepare for the week ahead, the interplay of economic data releases, interest rate expectations, and corporate earnings reports sets the stage for potentially impactful developments in the financial markets. With volatility on the horizon and significant indicators on the docket, investors must stay vigilant and adaptable in navigating the ever-evolving economic landscape.