Over the past week, we saw quite a bit of green in the markets after some better-than-anticipated CPI data. This led the Dow up 3.2%, the S&P up 3.4%, the Nasdaq up 3.7%, and the Russell up a whopping 4.63%. It’s important to note though, that we’re not out of the woods yet. Earnings season is just starting to heat up, and there could be some companies that throw us a few curveballs over the next couple of weeks!
As we mentioned in the previous section, the main highlight of last week was the CPI data release, which came in better than expected after a very hot jobs report in the prior week. Analysts were expecting Core CPI to come in around 3.3%. However, the actual reading came in at 3.2%, which was, of course, a breath of fresh air for the market. Additionally, overall CPI came in line with expectations at 2.9%. Additionally, housing starts, building permits, and the home builder confidence index all ticked up, which is an incredibly positive sign for the housing market overall.
Luckily for us, during this shortened week, things will be a bit more quiet than last week. The most important economic data releases will take place on Friday, which will be existing home salesMonitoring the market conditions this week. and final consumer sentiment for the month of January. However, this is the calm before the storm, as we have a huge week of economic data releases next week!
Q4 earnings season rages on this week, as some of the largest companies in the world report their earnings, such as:
01/21 – Netflix (NFLX), The Charles Schwab Corporation (SCHW), Prologis (PLD), 3M Company (MMM), Capital One Financial (COF), D.R. Horton (DRI), United Airlines (UAL), Interactive Brokers Group (IBKR), Seagate Technology (STX)
01/22 – Procter & Gamble (PG), Johnson & Johnson (JNJ), Abbott Laboratories (ABT), Progressive (PGR), GE Vernova (GEV), Amphenol (APH), Kinder Morgan (KMI), The Travelers Companies (TRV), Discover Financial Services (DFS), Crown Castle (CCI), Las Vegas Sands (LVS), Halliburton (HAL)
01/23 – Intuitive Surgical (ISRG), GE Aerospace (GE), Texas Instruments (TXN), Union Pacific (UNP), Elevance Health (ELV), CSX (CSX), Fair Isaac Corporation (FICO), McCormick (MKC/MKC.V)
01/24 – American Express (AXP), Verizon Communications (VZ), NextEra Energy (NEE)
There’s no doubt—everyone will be paying attention to what NFLX has to say this quarter, as they are the first large-cap tech company to report its earnings this quarter. Everyone will be eager to hear about how their business performed and how they are integrating AI into their product offerings.
Additionally, it will be important to pay attention to what large insurance companies like PGR and TRV have to say, as they might have some important insight on the damages caused by the recent California wildfires.
Monitoring the market conditions this week.
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