Stocks start September in high gear as Apple and Tesla split, and markets await the August jobs report
- Friday’s August jobs report is the big event in the week ahead, and the market is already speculating it could be weaker than the 1.4 million jobs expected.
- Comments from Fed officials will be watched closely for further clarity on the new policy to target average inflation around 2%, meaning inflation could run hot temporarily.
- Two market favorites, Apple and Tesla trade Monday, after splitting their stocks.
September is historically challenging for the market, but stocks could start the month on an upswing after what looks to be the best August for the S&P 500 in at least 34 years.
The week ahead will be busy with Fed speakers and economic reports, including the important August employment count Friday. Fed Vice Chairman Richard Clarida speaks at 9 a.m. ET Monday on monetary policy. He is is one of several officials, who are expected to reiterate Chairman Jerome Powell’s Jackson Hole message that the Fed would be willing to let inflation run hot temporarily to help the economy and job market.
The low volume days of late summer should be a hallmark of the week ahead, but there could also be window dressing trades around the month’s end, as investors re-balance holdings.
On Monday, there could be some excitement around two of the market’s favorite stocks. Apple begins trading after a 4-for-1 split. Tesla is also trading on a split-adjusted basis starting Monday, after it split its stock 5-for-1. Apple’s split changes its weight in the Dow, so the index is being adjusted and there will be new names in the index Monday as some old ones leave. ExxonMobil, Pfizer and Raytheon will be replaced by Salesforce.com, Amgen and Honeywell.
What stocks to look out for this week:
Tesla (TSLA) – Stock split complete. Looking for slight follow through then some bad news to come!
Apple (AAPL) – Stock split complete. Where she goes only insiders know..
Novavax (NVAX) – The bubble did indeed burst last week.. Continued downside ahead.
Draftkings (DKNG) – This has held up quite well over the last couple of weeks. Once sports betting ramps up this will no doubt be set for take off. Consider buying at these levels!