Overall month was quite unpredictable. While several stocks on the charts were strong, most of them saw a decline. On the other hand, Bank Nifty was able to maintain its grip for long time but, experts believe that it might see a decline in the upcoming week.
While many experts are on the look-out for the stock market expectations for coming week, globally, the markets are expected to be impacted by the earnings reports. For the week starting 6 November – 10 November, investors should expect earnings reports from Uber Technologies, UBS, Occidental Petroleum, Rivian Automotive, The Walt Disney Company, Honda Motor Company, etc. On 6th November 2023, report on New York Fed global supply chain pressure index will get released which is being tracked by global traders.
Apart from company-specific data, there are economic data points which are slated to be released in this week. The New York Fed is expected to issue quarterly report on household debt and credit on Tuesday. This report gauges financial condition of the US households in 3Q. US household debt increased to record ~$17.06 trillion in 2Q as a result of higher credit card debt, exceeding $1 trillion for the first time in its history. Therefore, consumers continue to rely on credit cards to fund their purchases, as inflation reaches its highest levels.
On Friday, traders will see timely consumer sentiment reading which gets released from University of Michigan. Therefore, Consumer Sentiment Index (MCSI) for November will get issued. MCSI declined to 5-month low of 63.8 in October. This means consumers were concerned regarding their personal finances. MCSI fell to record low of ~50 in June of the previous year as inflation was at its highest level in 4 decades.
On November 7, 2023, markets will see US Trade Balance (for the month of Sept 2023) and IBD/TIPP Economic Optimism Index (for November). While traders and investors expect that the US Federal Reserve is done with its rate-hiking campaign as inflation will now be moderated, report on China’s Inflation Rate (for October) will set the tone for the equity markets. This report is expected to be released on November 8.
While above are some of the stock market expectations for coming week, the previous week was dominated by the actions from the US Federal Reserve to hold the interest rates steady. Finally, the market saw the softer jobs report, which added to the fact that the US Fed might keep interest rates unchanged in their December meeting too.