U.S. PCE and 'Mini Jobs' Data in Focus as Salesforce (CRM) and Snowflake (SNOW) Report Earnings 【The week ahead】

 TradingKey - US stocks rebounded last week, ending a three-week slide, on rising expectations for a Federal Reserve rate cut in December. The market is now poised for further gains. This week, the Fed enters its pre-meeting blackout period. Investors will therefore focus on the US September PCE price index, and Wednesday's November ADP employment report (often referred to as the "small nonfarm payrolls") will also be closely watched. On the corporate earnings front, Salesforce (CRM.US) and Snowflake (SNOW.US) are set to report results. Additionally, semiconductor giant Marvell Technology (MRVL.US) will release earnings this week, alongside retail firms Macy's (M.US) and Kroger (KR.US).

Major Events Preview

Market Focus Shifts to September PCE Inflation and Personal Consumption Metrics

Although the Federal Reserve is more eager to see November's data (release date not yet confirmed), the September report will still draw significant attention. The market projects that the headline PCE will see a slight year-over-year increase from 2.7% to 2.8% in September. Meanwhile, the crucial core PCE price index is anticipated to remain unchanged at 2.9% year-over-year.

Following recent comments from Federal Reserve officials, traders are widely betting the central bank will cut interest rates at its December meeting. This expectation of lower interest rates has helped stabilize equity market sentiment.

Salesforce, Snowflake Earnings in Focus

The core focus will be on the Q3 earnings reports from two cloud service giants, Salesforce (CRM.US) and Snowflake (SNOW.US). As a pioneer of the SaaS model, Salesforce has pushed its operating profit margins to historic highs through stringent cost control. The market is now awaiting new growth catalysts from the monetization progress of its AI products. Snowflake, on the other hand, shattered market concerns of slowing growth with strong results last quarter and raised its full-year guidance. The question now is whether its upcoming earnings can maintain this stellar performance.

Furthermore, semiconductor representative Marvell Technology (MRVL.US) will release its earnings this week. As a significant AI chip player beyond Nvidia (NVDA.US), its developments in custom chips and data center networking are closely watched. In addition, retail stocks such as Macy's (M.US) and Kroger (KR.US) will also report their results.

Kazuo Ueda Issues Clearest Rate Hike Signal Yet

Bank of Japan Governor Kazuo Ueda has delivered his most explicit signal to date, suggesting the BOJ's monetary policy board is highly likely to take action this month. He indicated that authorities would make the appropriate decision regarding an interest rate increase.

Speaking to local business leaders in Nagoya, central Japan, on Monday, Ueda stated that the Bank of Japan "will weigh the pros and cons of raising the policy interest rate and make decisions at the appropriate time based on domestic and international economic, inflation, and financial market conditions." He further added that any rate hike would merely be an adjustment to the degree of easing, and overall conditions remain accommodative.

Selected Economic Data

Monday: US November ISM Manufacturing PMI

Wednesday: US November ADP Employment Change

Friday: US September Core PCE Price Index Year-over-Year

Key Events This Week

Monday: BOJ Governor Kazuo Ueda speaks

Tuesday: Fed Chair Jerome Powell speaks

Wednesday: ECB President Christine Lagarde speaks

Company Earnings

Monday: Marvell Technology (MRVL.O)

Tuesday: Salesforce (CRM.N)

Thursday: Tiger Brokers (TIGR.O)