Stock and Bond Markets Closed for New Year’s Day

Stock and bond markets will be closed on Monday in observance of New Year’s Day. The trading for the year 2024 will kick off on Tuesday.

U.S. Labor Market Data to Watch

Investors can anticipate the release of the latest U.S. labor-market data on the upcoming holiday-shortened week. The Bureau of Labor Statistics (BLS) will provide two key reports.

Job Openings and Labor Turnover Survey

On Wednesday, the BLS will release the Job Openings and Labor Turnover Survey. Economists are expecting the survey to reveal 8.75 million job openings on the last business day of November, indicating a slight increase compared to the previous month.

December Employment Data

On Friday, the BLS will report the employment data for December. According to economist consensus, there is an expected gain of 155,000 nonfarm payrolls during the month, which is lower than the 199,000 reported in November. The unemployment rate is projected to rise from 3.7% to 3.8%.

Other Economic Data to Watch

Aside from the labor-market data, there are several other economic indicators worth noting.

Institute for Supply Management (ISM) Reports

On Wednesday, the Institute for Supply Management will release the Manufacturing Purchasing Managers’ Index for December. Later in the week, on Friday, they will also unveil the Services equivalent. Both reports provide valuable insight into the state of these sectors.

Federal Open Market Committee (FOMC) Minutes

Also scheduled for Wednesday is the release of minutes from the mid-December monetary-policy meeting conducted by the Federal Open Market Committee. These minutes offer valuable insights into the committee’s assessment and decisions regarding monetary policy.

Earnings Calendar Highlights

The earnings calendar for this week includes notable results from Conagra Brands, Lamb Weston Holdings, and Walgreens Boots Alliance on Thursday. Constellation Brands will release their earnings report on Friday.

Monday 1/1 – Markets Closed

Equity and fixed-income markets will remain closed on Monday due to the New Year’s Day observance.

Tuesday 1/2 – Construction Statistics

The Census Bureau will report construction statistics for November. Economists are forecasting a 0.45% month-over-month increase in construction spending, reaching a seasonally adjusted annual rate of $2.04 trillion.

Wednesday 1/3 – Upcoming Economic Reports

• Job Openings and Labor Turnover Survey
• Institute for Supply Management’s Manufacturing Purchasing Managers’ Index
• Federal Open Market Committee Minutes

Federal Open Market Committee Meeting Minutes

The Federal Open Market Committee (FOMC) has released the minutes from its mid-December monetary-policy meeting. During the meeting, the FOMC decided to keep the federal-funds rate steady at 5.25% – 5.50%. Following the meeting, Fed Chair Jerome Powell’s post-meeting news conference was seen as dovish by Wall Street, which triggered a vigorous cross-asset rally to conclude 2023. Currently, traders are anticipating six 25-basis-point cuts to the federal-funds rate by the end of 2024, while the FOMC has only projected three cuts.

Job Openings and Labor Turnover

The Bureau of Labor Statistics (BLS) has released the Job Openings and Labor Turnover Survey for November. The consensus estimate suggests that there were 8.75 million job openings on the last business day of November, slightly higher than October. However, job openings are currently at their lowest level in 2.5 years.

Manufacturing Purchasing Managers’ Index

The Institute for Supply Management (ISM) has published its Manufacturing Purchasing Managers’ Index for December. The estimated reading is 47.1, slightly improving from November’s figure.

Earnings Announcements

Several companies, including Conagra Brands, Lamb Weston Holdings, RPM International, and Walgreens Boots Alliance, will be reporting their earnings.

National Employment Report

ADP has released its National Employment Report for December. Economists anticipate that private-sector employment will rise by 115,000 jobs, following a gain of 103,000 in November.

Friday 1/5

Quarter Three Fiscal-2024 Results

Constellation Brands has reported its third-quarter fiscal-2024 results.

Jobs Report for December

The BLS has released the jobs report for December. Experts predict an increase of 155,000 in nonfarm payrolls, surpassing November’s gain of 199,000. The unemployment rate is expected to tick up to 3.8% from its historically low figure of 3.7%.

Services Purchasing Managers’ Index

The ISM has released its Services Purchasing Managers’ Index for December. The consensus estimate suggests a reading of 52.7, matching November’s figure.