What will drive the markets this week?
On Friday, the S&P 500 concluded a five-session streak of reaching record highs, primarily due to Intel’s decline following a pessimistic revenue forecast. Concurrently, U.S. economic data revealed a moderation in inflation. Despite the lower closing for the S&P 500 and Nasdaq, all three major indexes marked their third consecutive weekly gain and their 12th weekly advance out of the last 13. For the week, the S&P 500 increased by 1%, the Nasdaq by 0.9%, and the Dow industrials surged by 7%.
Europe’s equity index earlier closed up 1.1%, marking a 3% gain for the week, which was its biggest weekly percentage advance since the week starting Oct. 30. LVMH jumped 12.8% after the world’s largest luxury group posted a 10% rise in fourth-quarter sales, driven by resilient demand, including from Chinese buyers.
In Asia, MSCI’s broadest index of Asia-Pacific shares excluding Japan closed down on the day but snapped a three-week losing streak for a 1.6% weekly rise.
This week is expected to be quite eventful, featuring significant events such as the Federal Reserve’s imminent decision on interest rates, the government’s release of the monthly jobs report, and the earnings reports of major players in the tech, pharmaceutical, and energy sectors.
While it is widely anticipated that policymakers will maintain their key interest rate on Wednesday, investors will closely scrutinize comments from Fed Chair Jerome Powell for any indications regarding the future trajectory of interest rates.
The spotlight will also be on the labor market this week, with the unveiling of job openings data, private payroll figures, and the government’s monthly employment report offering insights into the labor market’s robustness. Various tech behemoths are set to disclose their earnings throughout the week, starting with Microsoft (MSFT) and Alphabet (GOOGL) early on, followed by Apple (AAPL), Amazon (AMZN), and Meta (META) later in the week. In the pharmaceutical sector, Pfizer (PFE), Merck (MRK), and Novo Nordisk (NVO) are scheduled to report their earnings, while ExxonMobil and Chevron will reveal their latest results on Friday.
Events expected to move the markets this week
Monday, Jan. 29
- Ryanair Holdings (RYAAY) and Nucor Corporation (NUE) report earnings
Tuesday, Jan. 30
- Microsoft (MSFT), Alphabet (GOOGL), Advanced Micro Devices (AMD), Pfizer (PFE), United Parcel Service (UPS), and Starbucks Corporation (SBUX) report earnings
- S&P Case-Shiller home price index (November)
- Job openings (December)
- Consumer confidence (January)
Wednesday, Jan. 31
- Novo Nordisk (NVO), Mastercard Incorporated (MA), Novartis (NVS), and Boeing (BA) report earnings
- ADP employment (January)
- Federal Reserve interest rate decision
Thursday, Feb. 1
- Apple (AAPL), Amazon (AMZN), Meta Platform (META), Merck & Co. (MRK), Shell (SHEL), and Honeywell (HON) report earnings
- Initial jobless claims (Week ending Jan. 27)
- U.S. productivity (Fourth quarter)
- S&P manufacturing PMI (January)
- ISM manufacturing (January)
Friday, Feb. 2
- ExxonMobil (XOM), AbbVie (ABBV), Chevron (CVX), and Bristol-Myers Squibb (BMY) report earnings
- U.S. payrolls report (January)
- Consumer sentiment (January final)