Daily Updates: A Hefty Amount of Information for Morning Consumption
Updated Article:
1. Data-Driven December
Just wrapped up a fantastic run for the S&P 500 in November, with a 0.56% climb, but now investors are on edge as we head into December. Why all the fuss? This month is jam-packed with crucial economic data, including the highly anticipated U.S. jobs report on Friday. This report will help determine if the current rally can keep rolling, or if it's time for a breather.
- Significant Improvement: Analysts are predicting a significant month-over-month boost in the headline non-farm payroll print for November (in contrast to the dismal 12,000 jobs added in October, which was impacted by hurricanes and strikes). This would bolster the belief in a gentle economic landing.
Preceding this big reveal, we've got a few other labor market data points on the horizon. We'll be seeing JOLTS job opening figures on Tuesday, and the monthly ADP employment change numbers on Wednesday. On Tuesday, we'll also get our hands on the ISM Manufacturing Purchasing Managers Index (PMI), while Wednesday serves up the Services equivalent.
2. Zscaler's Q3 Report: Will it Secure Investors' Trust?
S&P 5006,032 (+0.56%)
Post-market today, it's Zscaler's time to shine as they release their Q3 financials. Since their 2018 debut in Stock Advisor, they've demolished the S&P 500, with a staggering 287% gain.
- Strong Revenue Growth on the Horizon: Analysts expect revenue to soar to $605.6 million for the quarter, a 21.9% increase compared to the same period last year. Fingers crossed that Zscaler will surpass expectations for fiscal 2025, as management set a somewhat modest target.
Nasdaq19,218 (+0.83%)
Throughout 2025, investors will be keeping a close eye on their progress in integrating AI into their cybersecurity product suite. This should help them retain their current client base and attract new ones next year.
3. Stellantis: Time for a Change at the Top
Dow44,911 (+0.42%)
In a surprising move, Stellantis CEO Carlos Tavares stepped down overnight. Tavares' departure comes amidst profit warnings from Stellantis in their 2024 annual results, which highlighted weaker demand in the U.S. and heightened competition in China.
- Industry-wide Struggle: The automotive industry is facing a global slowdown in demand, with Nissan Motors CFO Stephen Ma set to step down from his position. Nissan's stock has witnessed a substantial drop, down nearly 35% so far this year.
Bitcoin$97,289 (+2.21%)
4. Notable Q3 Earnings Ahead
Tuesday brings us Salesforce, a long-time Rule Breakers fave (up an astonishing 4,709% since January 2009!). Analysts expect revenue to hit $9.34 billion with earnings per share (EPS) of $2.43, indicating a healthy growth rate.
- Targeting New Markets: On Thursday, Veeva Systems will report earnings, with analysts predicting earnings to jump 17.9% to $1.58 per share. Fool analyst Buck Hartzell recently pointed out that Veeva's entrance into the horizontal enterprise applications marketplace has significantly expanded their potential addressable market.
Meanwhile, Kroger will release their earnings results on the same day. Analysts expect EPS to creep up by a modest 3.2% to $0.98. Despite the relatively modest growth, Dividend Investor analyst Anthony Schiavone notes that Kroger has delivered impressive annualized total returns of 20% over the previous five years, even as AI and technology stocks are dominating the market.
5. Foolish Fun
This Cyber Monday, share the company that broke your trust as a consumer, and never again invested in them. Whether you discuss with friends and family or become a member, hear what your fellow Fools think!
Relevant Enrichment Insights:
December 2024 Job Report:- Total Nonfarm Payroll Employment: Expected 155,000 jobs added, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.[1]- Unemployment Rate: projected to remain steady at 4.2%
Impact on S&P 500:- Market Reaction: Strong jobs report could keep the Fed from cutting interest rates again, possibly impacting the S&P 500. A robust jobs report could also support the stock market by indicating a healthy economy, although it may also lead to higher interest rates if inflationary pressures emerge.[1]- Investor Sentiment: The S&P 500 has seen a two-year climb, and investors are closely monitoring the impact of the incoming Trump administration's policies, particularly in relation to tariffs and geopolitical tensions. A stable job market could continue to support large-cap stocks, but policy changes could introduce uncertainty.[4]
Impact on Federal Reserve Interest Rates Decision:- Rate Cuts: The December employment report shows a significant gain in jobs, reducing the likelihood of interest rate cuts by the Federal Reserve. The strong report's details, such as steady wage inflation and soft hours data, suggest a cautious interpretation of labor market strength. This means the Fed may have room to cut rates multiple times in 2025, though the immediate reaction to the report suggested a reduced chance of a March rate cut.[5]
[1] Source: The Balance[2] Source: Reuters[3] Source: Barrons[4] Source: Investopedia[5] Source: CNBC
Investors are looking forward to the upcoming U.S. jobs report in December, as it could influence the direction of the current market rally. A significant improvement in the headline non-farm payroll print could bolster the belief in a gentle economic landing. (investing, money, finance)
Investors will be closely watching Zscaler's Q3 financials, released post-market today, as the company has demonstrated strong revenue growth since its 2018 debut. Analysts expect a 21.9% increase in revenue for the quarter, indicating that Zscaler may surpass their modest fiscal 2025 target. (investing, money, finance)
