What will drive the markets this week?
Last week Friday, global stocks were mostly lower following the US federal reserve’s decision to raise interest rates by 50 basis points on Wednesday and the European Central Bank’s decision to move its key interest rate from 1.5% to 2% on Thursday.
All the major indices on Wall Street recorded losses on Friday and all ended with weekly losses. Investors showed fears after the fed further signaled even more policy tightening in 2023 and even provided projections that interest rates would top the 5% mark in 2023, a level not seen since 2007.
*This week the U.S. housing market will also be in the spotlight, with the NAHB Housing market Index due for release on Monday, followed by housing starts and building permits on Tuesday. Data on new and existing home sales for November will be released later in the week. *
On Friday, the Bureau of Economic Analysis (BEA) will issue the Personal Consumption Expenditures (PCE) Price Index for November—the Federal Reserve’s preferred gauge of inflation. Companies reporting earnings next week will include Carnival Corporation, Nike, General Mills, FedEx, Micron Technology, and CarMax, among others.
Events expected to influence financial markets in the week
Monday, December 19
- Heico Corp. (HEI) and Carnival Corp. (CCL) report earnings
- NAHB Housing Market Index
- BOJ Interest Rate Decision
Tuesday, December 20
- Nike (NKE), General Mills (GIS), FedEx Corp. (FDX), FactSet Research Systems (FDS), Neogen Corp. (NEOG), Worthington Industries (WOR), BlackBerry Ltd. (BB), and FuelCell Energy (FCEL) report earnings
- Housing Starts (Nov)
- Building Permits (Nov)
Wednesday, December 21
- Micron Technology (MU), Cintas Corporation (CTAS), and The Toro Company (TTC) report earnings
- Existing Home Sales (Nov)
- CB Consumer Confidence (Dec)
- U.S. Current Account Balance (Q3)
Thursday, December 22
- Paychex Inc. (PAYX), CarMax (KMX), Mission Produce (AVO), and Apogee Enterprises (APOG) report earnings
- U.S. GDP Growth Rate - Final Reading (Q3)
- Real Consumer Spending - Final Reading (Q3)
- Corporate Profits - Final Reading (Q3)
- CB Leading Economic Index (Nov)
- Kansas Fed Composite Index (Dec)
Friday, December 23
- Personal Income & Spending (Nov)
- Durable Goods Orders (Nov)
- PCE Price Index (Nov)
- New Home Sales (Nov)
- Michigan Consumer Sentiment Index - Final (Dec)