The uncertainty in the stock market, with sharp ups, downs and reversals, will probably be the norm again next week, where investors await Friday’s report for the job market and follow the presidential debate, writes CNBC Sunday.
“We’re really seeing a typical September now, but underlying we see an opportunity for investors to move from the big tech stocks to a wider range of stocks,” Don Townswick, director of equities strategy for Conning, told CNBC.
He expects that the technology will remain at the top, and that the market can change in October if the results are good and the companies’ prospects are positive.
Equity strategist Paul Harper in DNB Markets points out that US policy and macro figures will affect the stock markets next week.
– It will be a pretty interesting week. We will see the first of the presidential debates on Tuesday, and it will be exciting to see if the outcome of this will have an effect on the expectations surrounding the election. On Friday, there will also be some important macro figures in the form of “nonfarm payrolls” and figures for the ISM industry, the equity strategist said on Sunday night.
“Nonfarm payrolls” is an index of employment in the United States, and is often referred to as “the most important number of the month”. The ISM index is an index that attempts to measure activity in the US economy using a survey of business leaders.
– We have now seen a number of mixed macro figures after a period of fairly good figures earlier, which makes the situation of further development more unclear than before, whether the recovery in the economy flattens out rather than a V-bottom that we saw in the first part of the recoil.
– Will investors wait and see the reactions from the macro figures?
– It may well be a little calm at the beginning of the week, but the market has been quite volatile in recent weeks, which may continue next week.
Can be better for growth stocks
– The start of the month was weak for tech stocks, but in recent weeks there has been a little more fear of growth in the economy where cyclical stocks have lagged behind while growth stocks have done better. Tech stocks are a sector that usually manages to generate growth regardless of what happens in the economy, and one can get a kind of “flight to safety”, ie that investors can find a safe haven.
– The US Congress has not been able to agree on an extension of the stimulus package that expired at the end of July. I think it will have an effect on the macro figures in the next few weeks, and if that happens, the growth rates will probably remain relatively good, says Harper.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.