High volatility is expected Wednesday with ADP Employment at 8:15 am and ISM Manufacturing PMI at 10:00 am. Thursday brings the critical Nonfarm Payrolls and Average Hourly Earnings at 8:30 am, earlier than usual due to the holiday weekend. Markets are hypersensitive to labor cooling as Fed Chair Warsh speaks Wednesday at 9:00 am. JOLTS and Consumer Confidence on Tuesday at 10:00 am provide early cues for the labor market's trajectory and potential rate path shifts.
Traders should prepare for significant price action in treasury yields and indices during the 8:30 am Thursday NFP release. Monitor the ISM Manufacturing data for signs of stagflation; a miss in employment alongside rising prices could trigger a sharp sell-off in growth stocks.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.