This earnings season has been quite a mixed bag, with companies like The Trade Desk declining over 30% and companies like Dutch Bros skyrocketing nearly 30% on the back of their earnings report. This tremendous amount of volatility has led to a mixed bag of results in the indices, with the Russell down 0.12%, the Dow up 0.25%, the S&P up 0.99%, and the Nasdaq up 1.70%. Unfortunately, we’re not out of the woods yet, as we have another big week ahead of us despite the shortened trading week.
Last week, we received some not-so-great news in terms of economic data. To start things off, CPI came in a good bit higher than expected, at 3.0%, versus an expected 2.8%. Core CPI also came in at 3.3% versus an expected 3.1%. Not only did CPI miss expectations, but so did PPI, coming in at 0.4% versus an expected 0.3%. Additionally, retail sales came in much lower than expected, coming in at -0.9% versus an expected -0.2%.
Although this week is a shortened trading week in the US, it’s going to be a very busy week in terms of economic data releases. We kick things off with the home builder confidence index on Tuesday, followed by housing starts, building permits, and the January FOMC meeting minutes on Wednesday. Lastly, on Friday, we have final consumer sentiment for the month of February as well as existing home sales.
Earnings season continues, as some of the largest companies in the world report their earnings, such as:
02/18 – Arista Networks (ANET), Medtronic (MDT), Cadence Design Systems (CDNS), Occidental Petroleum (OXY), Entergy (ETR), Vulcan Materials Company (VMC), Baidu (BDU), EQT (EQT), CoStar Group (CSGP), Viking Holdings (VIK), Devon Energy (DVN), Intercontinental Hotels Group (IHG)
02/19 – HSBC Holdings (HSBC), Analog Devices (ADI), Carvana (CVNA), Garmin (GRMN), Crown Castle (CCI), Texas Pacific Land Corporation (TPL)
02/20 – Walmart (WMT), Alibaba (BABA), Booking Holdings (BKNG), NetEase (NTES), Nu Holdings (NU), Copart (CPRT), Block (XYZ), Live Nation Entertainment (LYV), VICI Properties (VICI)
This week, everyone will be paying attention to what WMT, BABA, and BKNG will have to say. WMT and BKNG will give us a great idea of where the consumer is financially amidst these economically trying times. And BABA will give us an idea of where the Chinese economy is and how leadership views the China tariffs being imposed by Trump.
Monitoring the market conditions this week.
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