What will drive the markets this week?
Last week witnessed mixed trading as various indices, including the Dow, the S&P 500, and Europe’s STOXX 600, ended the week in losses. Stocks rose on Friday, but those gains were not enough to offset losses from earlier in the week.
In the US, quarterly earnings from Netflix and Alphabet announcing job cuts drove their respective stocks higher, driving a more than 2% rise on the Nasdaq which ended in a 0.5% weekly gain. Netflix Inc shares jumped 8.46% as the streaming company added more subscribers than expected in the fourth quarter.
This week, earnings season could enter one of its busiest weeks with reports from some of the largest companies in the world. We can expect earnings from Microsoft, Johnson & Johnson, Tesla, AT&T, Verizon, Boeing, IBM, Visa, and Mastercard, among others. On Tuesday, S&P Global will release its Composite PMI for January, gauging business activity across the U.S. On Thursday, the Bureau of Economic Analysis (BEA) will issue the advance estimate for the fourth-quarter gross domestic product (GDP), followed by its Personal Consumption Expenditures (PCE) Price Index for December on Friday. The latest updates on the housing market will include new and pending home sales for December.
Events expected to influence financial markets in the week
Monday, January 23
- Baker Hughes Company (BKR), Brown & Brown Inc. (BRO), Synchrony Financial (SYF), Logitech International (LOGI), Zions Bancorp (ZION), Crane Holdings Company (CR), and F.N.B. Corporation (FNB) report earnings
- Conference Board Leading Index (Dec)
Tuesday, January 24
- Microsoft (MSFT), Johnson & Johnson (JNJ), Danaher Corp. (DHR), Verizon Communications (VZ), Texas Instruments (TXN), Raytheon (RTX), Lockheed Martin (LMT), Union Pacific Corp. (UNP), General Electric (GE), Intuitive Surgical (ISRG), Canadian National Railway (CNI), 3M Company (MMM), The Travelers Companies (TRV), Capital One Financial (COF), Halliburton (HAL), and D.R. Horton (DHI) report earnings
- S&P Global Composite PMI (Jan)
- Richmond Fed Manufacturing Index (Jan)
Wednesday, January 25
- Tesla (TSLA), Abbott Laboratories (ABT), NextEra Energy (NEE), AT&T (T), IBM (IBM), Boeing (BA), Elevance Health (ELV), Automatic Data Processing (ADP), ServiceNow Inc. (NOW), Progressive Corp. (PGR), U.S. Bancorp (USB), CSX Corp. (CSX), General Dynamics (GD), Freeport McMoran (FCX), Crown Castle Inc. (CCI), Norfolk Southern Corp. (NSC), Hess Corporation (HES), Kimberly-Clark (KMB), Las Vegas Sands (LVS), and Nasdaq Inc. (NDAQ) report earnings
Thursday, January 26
- Visa (V), Mastercard (MA), Comcast Corporation (CMCSA), Intel (INTC), Marsh & McLennan Companies (MMC), Northrop Grumman Corp. (NOC), Scherwin-Williams Co. (SHW), Blackstone Inc. (BX), Valero Energy (VLO), Archer-Daniels-Midland Company (ADM), Dow Inc. (DOW), Xcel Energy (XEL), Nokia (NOK), Deutsche Bank (DB), T. Rowe Price Group (TROW), Tractor Supply Co. (TSCO), Southwest Airlines (LUV), Robert Half International (RHI), and U.S. Steel Corp. (X) report earnings
- U.S. GDP Growth Rate - Advance Estimative (Q4 2022)
- Durable Goods Orders (Dec)
- Retail Inventories (Dec)
- Wholesale Inventories (Dec)
- Quarterly PCE Prices (Q4 2022)
- Kansas Fed Composite Index (Jan)
- New Home Sales (Dec)
Friday, January 27
- Chevron (CVX), American Express (AXP), Charter Communications (CHTR), HCA Healthcare Inc. (HCA), Colgate-Palmolive (CL), Roper Technologies (ROP), Gentex Corporation (GNTX), and WisdomTree Inc. (WT) report earnings
- Personal Income and Spending (Dec)
- Personal Consumption Expenditures (PCE) Price Index (Dec)
- Michigan Consumer Sentiment Index - Final Reading (Jan)
- Pending Home Sales (Dec)