What to Expect in The Stock Market This Week (August 9-13)
.....Leisure and Hospitality in my sights. Catch me on YouTube, IG, and TikTok daily
The Stock Market has been on a crazy run for this year. The S&P 500 has returned almost 20% so far and the Dow Jones has returned almost 17%. Needless to say, it has been a great year so far.
However. as they say past performance means nothing for future returns so forget everything I just said and let’s talk about the week ahead. Depending on the way your mind thinks, the next sentence is either gonna spook you or get you excited.
Big Firms are calling for higher highs in the stock market this year, Per Axios’ Sam Ro
By the numbers: On Thursday, Goldman Sachs’ David Kostin raised his year-end S&P 500 target to 4,700 from 4,300. He raised his earnings per share estimate to $207 from $193, acknowledging that companies have been more profitable than he had anticipated.
Regardless of how you receive that news, one thing I know is no matter how well equipped and sophisticated these analysts are. In the end, no man can call predict the future. So all of that can be taken with the biggest grain of salt.
This week, 1100 companies will be reporting earnings.
So far, 88% of companies that have reported earning so far have beaten earnings expectations. Which has caused analysts to scramble and begin upping their expectation targets for the 3rd Quarter.
In tech, that number actually jumps to 97%. And people say don’t bet against the Fed more like Don’t better against Tech!
However, do not expect any major spikes for any earnings beat. If anything expect stocks to fall a bit because the revenue or earnings may not be as much as people are expecting.
So much has been baked into these companies prices that there is little room for error.
The main focus for the week will be the Leisure and Hospitality Industry. In case, you did not know service makes up a large part of the US labor force which is why most of the job gains so far this year have been in this industry. As a matter of fact according to Investopedia, 2/3 of the Jobs have been from restaurants and bars.
And reporting earnings this week are restaurants and hospitality industry companies like: Disney ($DIS), Airbnb ($ABNB), Wendy’s ($WEN), and DoorDash (DASH). These companies can give us an idea of what is happening with wage increases and how that is affecting the bottom line. Also, how they are dealing with inflation.
Speaking of inflation, we will be getting inflation numbers on Wednesday. Which is expected to be higher than it was in June (5.4%). By the way do you guys remember at the beginning of July when everyone was freaking out about inflation. Seems now no one is talking about it anymore. They are not even searching it anymore, according to Axios’ Felix Salmon,
But along with inflation numbers we get consumer sentiment numbers on Friday. Which I think is much more important. Will consumers with all their extra cash from the various Stimuli (Stimuluses?) be willing to start considering waiting to make a purchase or are they just gonna keep paying sticker price for everything? I think this will drive the direction of inflation more than anything. From June to July, it dropped 5% as the prices started to worry consumers but people were still willing to SPEND THAT MONAY!!
These are the things that I am thinking about as we head into the week of August 9th 2021.
Premier League kicks off on Friday with Brentford vs Arsenal.
And new look Man U kicks off the season on Saturday against Leeds
LETS GO RED DEVILS!! This is the YEAR we return to GLORY!!
Happy Birthday to my baby sister Hannah. I cannot believe you are now in 9th GRADE!! My GOODNESS I AM OLD!!
Remember GENEROSITY > greed
God bless Each and Everyone of y’all
✌🏾
-Kelechi