Last week, the market struggled as inflation data pushed stock prices down, despite the fact that there were some great earnings reports. This pop in inflation led to the Dow down 0.19%, the S&P down 0.45%, the Nasdaq down 1.47%, and the Russell down just 0.06% this week. Unfortunately, though, we’re not out of the woods yet. We’ll get the first revision of Q4 GDP as well as an earnings report from the most important stock in the stock market this week.
As we alluded to in the previous section, we saw misses in terms of both CPI and PPI last week. Month-over-month CPI and Core CPI both missed expectations by 0.1%, and year-over-year CPI and Core CPI both missed expectations by 0.2%. When you combine this with the fact that there were some huge misses on PPI data, with PPI coming in at 0.3% and Core PPI coming in at 0.6%, versus an expected 0.1% for both forms of PPI, the market became very uneasy. Additionally, there was a pretty serious miss in terms of housing starts, with January’s numbers coming in at 1.33 million compared to an expected 1.45 million.
This week, we get a bit of a break in terms of economic data releases. The most prominent event this week is the release of the Fed’s January FOMC meeting minutes. It will be important to read through these, as they will help us get a better view into the minds of various Fed officials. Additionally, we have some very important earnings releases this week, which we’ll cover in the next section:
Although the bulk of earnings season is past us at this point, we still have some very important companies reporting earnings this week, such as:
02/20 – HSBC Holdings (HSBC), Walmart (WMT), The Home Depot (HD), Palo Alto Networks (PANW), Barclays (BCS), Medtronic (MDT), Public Storage (PSA), Realty Income Corporation (O)
02/21 – NVIDIA (NVDA), Analog Devices (ADI), Synopsys (SNPS), Suncor Energy (SU), Verisk Analytics (VRSK), Exelon (EX), ANSYS (ANSS), Trip.com Group (TCOM), Vertiv Holdings (VRT), Nutrien (NTR)
02/22 – Intuit (INTU), Lloyds Banking Group (LYG), Booking Holdings (BKNG), MercadoLibre (MELI), EOG Resources (EOG), VALE S.A. (VALE), Pioneer Natural Resources (PXD), ENI S.p.A. (E), Copart (CPRT), Pacific Gas & Electric (PCG), Keurig Dr Pepper (KDP)
02/23 – Berkshire Hathaway (BRK.A/BRK.B), Warner Bros. Discovery (WBD)
This week, all eyes will be on NVDA. This chip giant has been surging in price over the past couple of months, surpassing companies like Amazon and Alphabet in market cap. It will be interesting to see the numbers they put up as well as the guidance they provide. This company has been blowing analyst expectations out of the water, and everyone is eager to see if they do it again.
We’ll also hear from the Oracle of Omaha and the behemoth that is BRK.A/BRK.B. Since this company owns a wide spectrum of businesses, it will be interesting to hear how they are faring. This will also be Berkshire’s first earnings release since Buffett’s legendary right-hand man, Charlie Munger, passed away.
Monitoring the market conditions this week.
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