3 Things to Watch Wednesday That Will Impact the Market
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Following the snapback rally in equities over the two prior days, it's not that surprising to see futures indicating a lower open. As we get closer to the market open and have the ADP Employment Change report for September in hand, we're likely to have a better sense as to how equities will kick off trading today.
A hotter-than-consensus figure would quash Fed pivot chatter, but the reported figure by ADP will have to be married with pricing comments from both S&P Global's (SPGI) September Services PMI as well as ISM's Non-Manufacturing PMI for September. Those reports drop at 9:45 AM ET and 10 AM ET, respectively, which means we're likely to see a more defined direction for today's trading once they have been digested.
Also on the radar is the outcome of the OPEC+ gathering, which is expected to result in oil production cuts, but how large remains to be seen. In recent days, reports suggested cuts below 1 million barrels per day, but now speculation is for as much as 2 million barrels per day. We'll be watching this closely given the portfolio's position in Energy Select Sector SPDR Fund (XLE) .
We also have a fresh warning on the consumer from Helen of Troy (HELE) , which issued downside revenue and EPS guidance for its 2023:
"... we see consumers increasingly adjusting their spending patterns in response to rising inflation and the impact of higher interest rates, particularly in our premium segments in some categories. Additionally, retailers continue to adjust their inventories to better align with their updated sales forecasts."
Helen of Troy won't be the only one saying this in the coming weeks.
Now to see what this morning's data bring for us and the market.
Action Alerts PLUS is long XLE.