Join Tematica Research's Chief Macro Strategist, Lenore Hawkins, and Chief Investment Officer, Chris Versace, as they discuss and debate what's driving the market and the economy this week.

"Well, we have almost made it through what was the busiest week of earnings season for the S&P 500, a lot of economic data, and an FOMC decision! Lots of news, but there was little downside associated with any of them as equities continue to defy gravity AND 2021 is already a third over! "

Monday we’ll be looking at the final Markit and ISM Manufacturing PMIs for April for how the exceptionally strong manufacturing sector is evolving with ISM data tending to be more influenced by global economic growth and foreign earnings than IHS Markit PMI. We will also be looking at Construction Spending for March, which fell for the first time in February after four consecutive months of gains, to see if residential construction is still red hot and what about new office space these days?

Tuesday brings Total Vehicle Sales for April in light of weak inventory levels due to the semiconductor chip shortage. We’ll also look at Factory Orders for March, which had dropped 0.8% in February, the first decline in April 2020. 

Wednesday brings the ADP Employment report for April which is basically a private sector preview of the week’s biggest report, the April Employment report from the Labor Department that comes on Friday. Given the consecutive pandemic-era record low reports for initial jobless claims over the past few weeks. Expectations are for 750k new jobs from the ADP report after March’s increase of 517k. We will also get the Markit and ISM Service sector reports, which should show material improvements as lockdowns have been easing and we can finally repair the lockdown-induced(perhaps a wee bit of wine inspired) 9pm self-administered haircuts.

Thursday we will be looking to see if the recently impressive downward trend in Initial Jobless Claimscontinues. We will also get the preliminary Nonfarm Productivity Report for Q1 which will likely show a decline given the rate of hiring in the first quarter.

Friday brings what will be the most impactful report, April’s Non-Farm Payroll report which is expected to see an increase of 925k jobs after an increase of 916k in March.

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Resources: Tematica Research | Chris Versace | Lenore Hawkins