Week Review into W/C 31st May Memorial Day

The Balanced Trader
Jun 2, 2022
2 min read

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Highlights: Key Labor Market Reports Out this Week

Next week, market watchers can expect several key updates gauging the strength of the U.S. labor market. On Wednesday, the Bureau of Labor Statistics (BLS) will release its monthly Job Openings and Labor Turnover Survey (JOLTS) report, measuring openings, hires, and separations for the month of April. Job openings stood at a record 11.5 million in March, amid a historically tight labor market. Projections for April anticipate a slight decline to 11.4 million openings. Meanwhile, the job quits rate stood at 3% as turnover remains high amid the Great Resignation, with workers continuing to seek more favorable job opportunities.

Payroll service provider ADP will release its monthly National Employment report tracking private sector payrolls on Thursday. Consensus estimates call for a gain of 280,000 positions, following a smaller-than-expected gain of 247,000 jobs in April. The BLS will also release its May nonfarm payrolls report on Friday. Projections call for a gain of 310,000 jobs, compared to an increase of 428,000 positions for both March and April. As of April, nonfarm payrolls stood at 151.3 million, 0.8% below the pre-pandemic peak of 152.5 million recorded in February 2020.

Events Calendar:

Monday, May 30

U.S. Market Holiday

Tuesday, May 31

Salesforce (CRM) and HP (HPQ) report earnings
S&P Case-Shiller National Home Price Index (March)
Federal Housing Finance Agency Home Price Index (March)
Dallas Fed Manufacturing Index (May)
CB Consumer Confidence (May)
Chicago PMI (May)

Wednesday, June 1

S&P Global Manufacturing PMI (May)
JOLTS Job Openings & Quits (April)
Dallas Fed Services Index (May)
Fed Beige Book

Thursday, June 2

Broadcom (AVGO), CrowdStrike (CRWD), and Lululemon (LULU) report earnings
ADP Private Sector Payrolls (May)
Factory Orders (April)

Friday, June 3

Nonfarm Payrolls Report (May)
S&P Global Composite PMI – Final (May)
ISM Non-Manufacturing PMI (May)

Weekend Reading:

https://www.federalreserve.gov/newsevents/pressreleases/monetary20220504b.htm

The Federal balance sheet saw its first monthly decline since July of 2020 as the long-awaited taper slowly began. Earlier this month, the feds announced their plan to allow $30 billion of runoff a month for the first three months before eventually raising it to $60 billion. Although this topic is highly debated, stocks have historically struggled during periods of balance sheet contractions.

https://www.benzinga.com/top-stories/22/02/25487985/what-the-feds-balance-sheet-reduction-will-mean-for-the-s-p-500