5 Important Developments To Follow Next Week

There have been 5 important developments to follow in the next week. April employment figures and earnings reports will keep the markets busy.

Here's what to know before starting the new week:  

1.Strong Employment Growth Predicted in the USA

The US economy is predicted to post another strong job growth in April. The non-farm payroll report, due on Friday, is expected to show 978,000 jobs created after a reading of 916,000 in March. For the unemployment rate, estimates were that it fell from 6 percent to 5.7 percent. With the financial incentives and vaccination program provided in the country, the reduction of epidemic concerns brought about a faster economic recovery in the USA.  

2.Earnings Reports

While more than half of the S&P 500 companies publish their results, earnings are able to recover due to the epidemic last year. Many names, including vaccine manufacturers Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA), will continue to report earnings this week. Alongside travel-related names such as Hilton Worldwide Holdings Inc (NYSE: HLT) (NYSE: HLT) and Caesars Entertainment (NASDAQ: CZR), some consumer brands such as Anheuser Busch Inbev (BR: ABI) and Estee Lauder (NYSE: EL) will submit their reports. Other names include General Motors (NYSE: GM), Uber (NYSE: UBER), ViacomCBS (NASDAQ: VIAC), DraftKings Inc (NASDAQ: DKNG) (NASDAQ: DKNG) and Beyond Meat (NASDAQ: BYND).  

3.FED Speakers

FED (US Federal Reserve) Chairman Jerome Powell will give a speech on Monday, but he is not expected to reveal new data on the economy in his speech on social development at the online conference hosted by the National Community Reinvestment Coalition. Last week, Powell stated that "it is not yet time" to talk about slowing the Fed's monthly bond purchases of $ 120 billion. Dallas Fed Chairman Robert Kaplan will speak on Tuesday and Thursday, while New York Fed President John Williams, Minneapolis Fed Chairman Neel Kashkari, Chicago Fed Chairman Charles Evans, Boston Fed Chairman Eric Rosengren and Cleveland Fed Chairman Loretta Mester are among the names to speak.  

4.PMI Data Will Be Announced

Investors will look at ISM manufacturing and service reports ahead of Friday's key business report. ADP's private sector recruitment survey will be announced on Wednesday. On Thursday, the first weekly unemployment applications will be published. While applications fell from 6,149 million in April 2020, it still stands above the 200,000-250,000 range, which is consistent with a healthy labor market. In the first week of April, 16.6 million people received unemployment benefits.  

5.Bank of England will Meet

With the UK economy recovering strongly from the pandemic recession, the Bank of England (BoE) could cut stimulus packages and reduce the size of the bond purchase pace at its Thursday meeting. Analysts also forecast an updated economic outlook, including a larger recovery in second-quarter growth and a lower peak in unemployment. In February, the Bank of England predicted that the economy would grow by 5 percent this year, following the biggest loss in 300 years, with production declining by about 10 percent the previous year.       Source: Investing.com