Heading into the Christmas holidays, we will still find a few companies releasing their corporate earnings later in the week, but most of them have considerably small market capitalization to have any major impact to make the market move. While there will be a few economic data releases, expect low trading volumes and a narrow trading range to dominate most of the market.
Cal-Maine Foods Inc (CALM ) is expected to release their earnings this week, but despite recent bullish moves, they only have around $2.40 billion market capitalization. However, given the expected low trading volumes after the Christmas holiday leading up to New Year’s Eve, drastic price actions of smaller stocks can move major stock indices. So, it might be a good idea to keep an eye on their earnings report this week.
In terms of economic data, we will have the consumer confidence figure by Wednesday, and it can actually help investors predict how the Christmas holiday sales will go, but given the strong labor market and high consumer sentiments in the last two months, it should be a solid number.
To sum up, expect some random price spikes as trading volume will be low and it might be a good idea to sit back and relax, and postpone any long-term investment decisions this week.
Check out last week’s Market Glance here in which investors were expecting some positive housing sector data to lift the markets.