Jay Woods, a seasoned expert on the NYSE floor and the chief market strategist at Freedom Capital Markets, holds a different view about the impactful economic reports this week, diverging from the conventional focus on Friday’s PCE inflation report. He emphasizes that the weekly jobless claims data, set to be released on Thursday, might hold more significance for the markets. Woods argues that if jobless claims were to spike, it could signal that the Federal Reserve still has significant work to address rising unemployment, impacting market movements.
Moreover, Woods suggests that the PCE inflation report might come as less of a surprise to Wall Street due to many of its inputs already being anticipated by market analysts. Thus, the labor data is expected to offer new insights that could potentially sway market trends.
This week, Woods is also closely monitoring Micron, a less prominent player in the memory chip industry. Micron’s stock is currently on an upward trajectory, with earnings set to be reported on Tuesday after trading hours. According to Woods, the stock has firm support at the $145 level, with potential long-term upside reaching $220, making it an attractive watch.
Additionally, Woods is observing several other economic indicators. He highlights the significance of the Russell 2000 index maintaining the 2,400 level, which could signal a “breakout or a fake out” in market terms. He is also keeping an eye on KB Home’s earnings scheduled for release on Wednesday and Costco’s earnings on Thursday, which may provide insights into any shifts in consumer spending habits.
As for broader economic conditions, Woods is scrutinizing the 10-year Treasury yield. A downward trend in these longer-term rates is necessary to signal stability in the stock market. Lastly, the looming threat of a government shutdown remains a critical consideration for the markets in the upcoming days.
Jay Woods’ insights offer a nuanced perspective on the week’s key financial indicators, guiding investors on strategic points of focus beyond the conventional outlook. His analysis provides a comprehensive view of the market dynamics at play, encouraging a broader examination of economic data to make informed investment decisions.