Market Madness: How This Week’s News Could Impact ES and NQ Futures
The stock market has been on a wild ride in recent months, with pandemic-related uncertainty and inflation concerns fueling volatility. This week, a slate of economic reports and indicators could add to the madness, potentially affecting the ES (S&P 500) and NQ (Nasdaq 100) futures markets. Here’s a breakdown of what to watch for and why investors might want to brace themselves.
Monday: Core Durable Goods Orders and Pending Home Sales
Monday kicks off with two reports, Core Durable Goods Orders (MoM) (Jan) and Pending Home Sales (MoM) (Jan). While the latter might seem irrelevant given last week’s huge inflation numbers, it’s worth noting that the housing market has been a bright spot in an otherwise shaky economy. Still, both reports might not have a major impact on the futures markets.
Tuesday: CB Consumer Confidence
Next up on Tuesday is the CB Consumer Confidence (Feb) report. While many investors consider this to be a “ridiculous measurement,” it can still spark volatility in the market. After all, consumer confidence is closely tied to spending, and spending drives the economy.
Wednesday: ISM Manufacturing PMI
On Wednesday, investors will be watching the ISM Manufacturing PMI (Feb) report. This is a key indicator of the health of the manufacturing sector, and investors who suffer from “penis dysmorphia” (a.k.a. an exaggerated sense of their own investment prowess) may cling to hope that it could signal a “soft landing” for the economy. However, given recent inflation concerns, the report could also spark anxiety among investors.
Thursday: Initial Jobless Claims
Thursday brings another report, this time on Initial Jobless Claims. While this is a lagging indicator, big money investors still pay close attention to it every time it’s released. With job growth and unemployment rates still uncertain in the wake of the pandemic, this report could have a big impact on the futures markets.
Friday: ISM Non-Manufacturing PMI
Finally, on Friday, intraday trading will see the release of the ISM Non-Manufacturing PMI (Feb) report. This report measures activity in the services sector, which accounts for a significant portion of the US economy. While it might seem odd to release this info during trading hours, it’s sure to be closely watched by investors looking for any signs of economic recovery or stagnation.
Buckle Up for a Bumpy Week
All in all, this week’s economic reports and indicators are likely to keep the stock market on edge. With inflation concerns, pandemic-related uncertainty, and a general sense of market madness, investors would do well to brace themselves for a bumpy ride. Whether you’re trading ES or NQ futures, it’s important to stay informed, stay cautious, and maybe even keep a sense of humor about it all.
