What will drive the markets this week?
Global stocks recorded gains on Friday last week to close the month mostly in gains. Corporate earnings in the US and Europe drove equities higher, with the Nasdaq recording its fourth week in gains. Shares of electric automaker Tesla recorded a record 33% rise in the week, following an 11% gain on Friday, to mark its best weekly performance since May 2013.
This week will be an eventful one, with big tech earnings, the U.S. labor market, and FOMC’s policy meeting taking center stage. We can expect earnings from some of the largest companies in the world, including big tech firms Apple, Google, Amazon, and Meta Platforms. ExxonMobil, Pfizer, UPS, McDonald’s, Caterpillar, Starbucks, and automakers Ford and General Motors will also report next week, among many others.
The latest reports on the labor market will also arrive this week, including the December JOLTS report, ADP’s National Employment Report tracking private sector payrolls, and the January nonfarm payrolls report. The Federal Open Market Committee (FOMC) will gather for its first policy meeting of 2023, where it is widely expected to raise interest rates by 25 basis points. We will also receive the latest updates on home prices, with the Case-Shiller National Home Price Index for November, as well as PMI readings from the Institute for Supply Management (ISM).
Events expected to influence financial markets in the week
Monday, January 30
- NXP Semiconductors (NXPI), GE Healthcare Technologies (GEHC), Alexandria Real Estate Equities Inc. (ARE), Canon Inc. (CAJ), Principal Financial Group (PFG), Ryanair Holdings (RYAAY), and Franklin Resources Inc. (BEN), and Whirlpool Corporation (WHR) report earnings
- Dallas Fed Manufacturing Index (Jan)
Tuesday, January 31
- ExxonMobil (XOM), Pfizer (PFE), McDonald’s (MCD), United Parcel Service (UPS), Amgen (AMGN), Caterpillar (CAT), Advanced Micro Devices (AMD), Stryker Corporation (SYK), Chubb Ltd. (CB), Mondelez International (MDLZ), UBS (UBS), and General Motors (GM) report earnings
- Employment Cost Index (Q4 2022)
- S&P Case-Shiller National Home Price Index (Nov)
- Freddie Mac House Price Index (Nov)
- CB Consumer Confidence Index (Jan)
- Chicago Purchasing Managers’ Index (PMI) (Jan)
- Day 1 of FOMC Meeting
Wednesday, February 1
- Meta Platforms (META), Novo Nordisk (NVO), Thermo Fisher Scientific (TMO), Novartis (NVS), T-Mobile Inc. (TMUS), Sony Corp. (SONY), Altria Group (MO), GSK (GSK), MetLife Inc. (MET), Banco Santander (SAN), and Aflac (AFL) report earnings
- JOLTS Report (Dec)
- ADP National Employment Report (Jan)
- S&P Global Manufacturing PMI (Jan)
- ISM Manufacturing PMI (Jan)
- Vehicle Sales (Jan)
- Day 2 of FOMC Meeting; Interest Rate Decision
Thursday, February 2
- Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), Eli Lilly (LLY), Merck (MRK), Gen Digital (GEN), Royal Dutch Shell (SHEL), Bristol-Myers Squibb (BMY), ConocoPhillips (COP), Qualcomm (QCOM), Honeywell International (HON), Starbucks (SBUX), Gilead Sciences (GILD), and Ford Motor Company (F) report earnings
- Challenger Job Cuts (Jan)
- Factory Orders (Dec)
- ECB Policy Meeting and Interest Rate Decision
- BOE Policy Meeting and Interest Rate Decision
Friday, February 3
- Sanofi (SNY), Cigna Corporation (CI), Regeneron Pharmaceuticals (REGN), Aon (AON), Zimmer Biomet Holdings (ZBH), Church & Dwight Co. (CHD), and CBOE Global Markets Inc. (CBOE) report earnings
- U.S. Nonfarm Payrolls Report (Jan)
- ISM Non-Manufacturing (Services) PMI (Jan)