Here are the 2 big things we're watching in the stock market this week

This week is the last full trading week of the year on Wall Street and it's packed with major economic and earnings reports. The data will help us sharpen our 2026 market outlook after a tough week that saw the S&P 500 close at a record high last Thursday but finish the entire week lower. 1. First, the economy: The U.S. government is still working on data that was delayed by the record-long 43-day federal shutdown. As a result, the most important issue for investors will be the November employment report and October retail sales figures due on Tuesday morning, and the November consumer price index on Thursday morning. Economists expect to see a 40,000 increase in nonfarm jobs in November, while the unemployment rate remains steady at 4.4%, according to FactSet. Some of the delayed October data will be included in Tuesday's edition, but a separate October version will not be published. The September jobs report, delayed from October 3 and released on November 20, showed 119,000 jobs were added, more than expected. However, the unemployment rate rose to 4.4%, its highest level since October 2021. Tuesday morning also brings the government's October retail sales report. While it provides additional information about the state of consumer activity at the start of the fourth quarter, it's a bit out of date given that management teams are already talking about how the holiday quarter begins and we're already receiving early holiday season sales data. November consumer price index is announced on Thursday morning. Given that the Federal Reserve opted to cut interest rates last week, economists expect to see year-over-year readings of 3.1% in both the headline figure and the core rate, which excludes food and energy prices, while investors will want to see evidence that inflation remains largely contained. This would be higher than the 3% reading seen in September for both. October CPI announcement was canceled due to the government shutdown. 2. Back to earnings: In the club portfolio, Nike reports after the closing bell on Thursday. We don't expect this to be the cleanest report as the company is in the midst of a difficult transformation, but we will be looking for signs of improvement. One important area that needs to be better understood is inventory. During Friday's December Monthly Meeting, Jim Cramer said we should see CEO Elliott Hill, who has now been on the job for about 14 months, make strong progress on clearing out old, outdated inventory. Beyond that, it's about innovation. Jim said this part might take some time. But anything from management about new and exciting sneakers and/or apparel in the works and restocking plans will be crucial. The Street expects Nike to deliver earnings per share (EPS) of 38 cents on revenue of $12.22 billion, according to consensus estimates compiled by LSEG. While Nike is the only club name reporting this week, there are a few other notable companies to watch. Home builders Lennar, on Tuesday evening, and KB Home, on Thursday evening, will offer additional information on the condition of the homes. This may help us better understand the name of the Home Depot Club, as it depends heavily on the real estate market. Micron will give us a fresh look at its semiconductor and data center business on Wednesday. We have a number of AI plays in our portfolio, including Broadcom and Nvidia on the chip side, and Amazon and Microsoft on the cloud and data center side. Darden, which owns Olive Garden and LongHorn Steakhouse, should offer insight into how consumers are feeling and spending accordingly on Thursday morning, as well as offering a detailed read on its Club name, Texas Roadhouse. (Jim Cramer's Charitable Trust is long NKE, HD, AVGO, NVDA, AMZN, MSFT, TXRH. See here for a complete list of stocks.) When you subscribe to the CNBC Investment Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation's portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.