What will drive the markets this week?
Last week was one of the best weeks for stocks globally as various indices and sectors advanced higher, thanks to investors globally digesting bank earnings in the US and betting inflation would ease in 2023. Wall Street indices ended Friday and the week in gains, while stocks in Europe and Asia also shot higher. It was the second consecutive week where the S&P 500 and the Nasdaq composite posted positive weekly gains.
This week will be a holiday-shortened one, with U.S. markets closed on Monday. However, it will still be a busy week for earnings, with more reports due from big banks and financial sector firms, including Morgan Stanley, Goldman Sachs, Charles Schwab, PNC Bank, and Discover Financial Services, among others. We’ll also get earnings from United Airlines, American Airlines, Procter & Gamble, and Netflix.
On Wednesday, the U.S. Census Bureau will report on December retail sales, while the Bureau of Labor Statistics (BLS) will issue the latest Producer Price Index (PPI). We can also expect updates on the housing market, including December housing starts, building permits, and existing home sales.
Events expected to influence financial markets in the week
Monday, January 16
- U.S. Markets Closed for Holiday
- United Microelectronics Corp. (UMC) reports earnings
Tuesday, January 17
- Morgan Stanley (MS), Goldman Sachs (GS), Citizens Financial Group (CFG), United Airlines (UAL), Interactive Brokers Group (IBKR), Signature Bank (SBNY), Pinnacle Financial Partners (PNFP), Old National Bancorp (ONB), and Hancock Whitney Corp. (HWC) report earnings
- NY Empire State Manufacturing Index (Jan)
Wednesday, January 18
- Charles Schwab (SCHW), Prologis (PLD), PNC Financial Services (PNC), Kinder Morgan (KMI), Discover Financial Services (DFS), J.B. Hunt Transport Services (JBHT), First Horizon Corp. (FHN), Alcoa (AA), Wintrust Financial (WTFC), and H.B. Fuller Company (FUL) report earnings
- U.S. Retail Sales (Dec)
- Producer Price Index (PPI) Inflation (Dec)
- Industrial Production (Dec)
- Business Inventories (Nov)
- NAHB Housing Market Index (Jan)
Thursday, January 19
- Procter & Gamble (PG), Netflix (NFLX), Truist Financial Corp. (TFC), PPG Industries Inc. (PPG), Fastenal Company (FAST), M&T Bank (MTB), Fifth Third Bancorp (FITB), Northern Trust Corporation (NTRS), KeyCorp (KEY), SVB Financial Group (SIVB), American Airlines (AAL), and Comerica Inc. (CMA) report earnings
- Building Permits (Dec)
- Housing Starts (Dec)
- Philadelphia Fed Manufacturing Index (Jan)
Friday, January 20
- HDFC Bank Ltd. (HDB), Schlumberger (SLB), State Street Corp. (STT), Huntington Bancshares Inc. (HBAN), Regions Financial Corp. (RF), Ericsson (ERIC), and Ally Financial (ALLY) report earnings
- Existing Home Sales (Dec)