This week, we saw a mixed bag of results in the market. Despite the fact that Amazon was added to the Dow Jones Industrial Average, the index was down 0.33% this week, while the S&P, Nasdaq, and Russell 2000 were up 0.86%, 1.73%, and 2.27%, respectively. However, local banks are beginning to feel the pressure once again, as it appears that New York Community Bank is on the edge of collapse, less than a year after assuming Signature Bank’s assets – so we’re likely to see a bit of turmoil in the finance sector going ahead.
As we mentioned, NYCB is teetering on the edge, after officials came out and said that the bank’s fourth-quarter loss was $2.4 billion more than previously anticipated. This, of course, has put investors on edge, which means everyone will be keeping an eye on regional banks going forward this year.
Aside from the banking news, the first revision of Q4 GDP came in slightly lower than anticipated. However, this didn’t seem to have an effect on the markets at large. Additionally, PCE and personal spending met expectations. However, personal income beat expectations by a very wide margin, coming in at 1.0% versus an expected 0.3%. Whereas pending home sales cratered, coming in at -4.9% versus an expected 1.5%.
This week things will be a bit calmer in terms of economic data releases. Things kick off on Wednesday with ADP employment, followed by the JOLTS report and Fed Beige Book. On Thursday, we’ll get to see the consumer credit numbers for January, followed by nonfarm payrolls, unemployment rate, and hourly wages on Friday. These consumer-focused metrics will be very important to pay attention to, as they will paint a very detailed picture of how consumers are faring.
Although earnings season is beginning to slow down, there are still some relatively important companies reporting their earnings this week, such as:
03/04 – Sea Limited (SE), GitLab (GTLB)
03/05 – CrowdStrike Holdings (CRWD), Target (TGT), Ross Stores (ROST), Ferguson plc (FERG), NIO (NIO)
03/06 – JD.com (JD), Brown Forman (BF.A/BF.B), Campbell Soup Company (CPB), Woori Bank (WF)
03/07 – Broadcom (AVGO), Costco Wholesale (COST), Marvell Technology (MRVL), The Kroger Company (KR), MongoDB (MDB), Samsara (IOT), Burlington Stores (BURL), DocuSign (DOCU)
This week, all eyes will be on AVGO as this chip giant reports their Q4 earnings. Although many of the chip designers/manufacturers have already reported their earnings, the chip market is highly fragmented right now. While many may think that the AI boom is benefiting all chipmakers, in reality, it’s only benefiting a select few. It will be interesting to hear the commentary that AVGO provides on both their Q4 numbers and their year ahead.
You should also keep an eye on what COST has to say in their earnings. Big box retailers like COST can give investors a great idea of how the average consumer is faring at any given time.
Monitoring the market conditions this week.
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