Post by Dave on Feb 1, 2021 2:36:48 GMT -8
Good morning. As I check the pre-market I see that we are green at +$2.56 at the moment. Hopefully, this will be our new trend.
What to Expect in the Markets This Week
What to Expect in the Markets This Week
Monday, February 1:
Markets Closed in Mexico for Constitution Day.
German Retail Sales (December).
Germany Manufacturing PMI (January).
French Manufacturing PMI (January).
Italian Manufacturing PMI (January).
U.K. Manufacturing PMI (January).
Eurozone Manufacturing PMI (January).
Eurozone Unemployment Rate (December).
U.S. Institute for Supply Management Manufacturing (ISM) PMI (January).
Tuesday, February 2:
Pfizer (PFE), Alphabet (GOOG/GOOGL), ExxonMobil (XOM), Amazon (AMZN), Alibaba (BABA) Report Earnings.
Eurozone Preliminary Gross Domestic Product (GDP) (Q4).
Brazilian Industrial Production (December).
Japanese Services PMI (January).
Chinese Caixin Services PMI (January).
Wednesday, February 3:
European Central Bank (ECB) Monetary Policy Statement.
U.K. Services and Composite PMIs (January).
German Services PMI (January).
French Services PMI (January).
Italian Services PMI (January).
Eurozone Market Composite PMI (January).
U.S. ISM Non-Manufacturing PMI (January).
Thursday, February 4:
Ford (F) and Snap (SNAP) Report Earnings.
U.K. Construction PMI (January).
Bank of England QE and Interest Rates Announcement.
U.S. Factory Orders (December).
Japanese Household Spending (December).
Friday, February 5:
Reserve Bank of India Interest Rate Decision.
German Factory Orders (December).
U.S. Nonfarm Payrolls (January).
U.S. Workforce Participation Rate (January).
U.S. Unemployment Rate (January).
U.S. Trade Balance (December).
Canadian Trade Balance (December).
Canadian Employment Change and Unemployment Rate (January).
Canadian Ivey PMI (January.)
Earnings Seasons Continues
Earnings season continues this week as another slate of big names report earnings. On Tuesday, the remaining tech titans weigh in with Alibaba, Amazon, and Google's parent company, Alphabet, all reporting earnings. Notably, all of them have been increasingly trying to push into the cloud-computing space. Amazon has been raking in money with its AWS business, with its comparably comfortable margins versus the famously razor-thin margins of Amazon's ecommerce business. Alphabet and Alibaba have their own cloud businesses, which they are working to expand, hoping to cash in on the expanding demand for cloud services. See how all three companies are able to expand in this competitive, but lucrative arena this week. Also, after Alphabet was hit with an antitrust lawsuit over its acquisition practices last August, the EU has filed antitrust charges against Amazon, and China has launched an antitrust probe into Alibaba. So tune into earnings calls to see how these companies respond to queries about these unfolding antitrust issues.
If you're interested in a less in-favor sector, energy giant ExxonMobil also reports earnings Tuesday. With the enormous decline in oil prices, first from the Russian-Saudi price war then the COVID-19 pandemic's economic disruption, Exxon has taken large losses. However, there has been one bright spot in its segments, and that is its chemicals business. Its chemicals business is different because unlike Exxon's upstream oil drilling business, it benefits from lower oil prices, because it uses oil as an input, not an output. That is also true of Exxon's downstream refinery businesses; however, oil prices dropped because the demand for gasoline, jet fuel, and other refined petroleum products dropped immensely due to the pandemic restricting travel, so refineries aren't in a position to take advantage of the wider margins.
How Are UK Businesses Feeling Post-Brexit?
This Monday the purchasing managers' index (PMI) for U.K. manufacturers is released and on Wednesday the PMI for businesses in the services sector is released. This will be the first PMI after the U.K. exited the EU single market. While the U.K.'s exist from the EU technically happened at the end of Jan. 2020, the U.K. stayed under EU rules, within the EU single market until the end of 2020, during which a new trade deal was reached. While the deal, named the Trade and Cooperation Agreement (TCA) ensures tariff and quota free trade in goods, it does little to address trade in services. In addition, new customs barriers for goods are still making trade in goods more difficult. PMI's survey how people across the business world are feeling and this is the first such check in under the new treaty.
US Unemployment Rate
The U.S. economy is still clearly ailing with unemployment at elevated levels. The $900 billion stimulus package passed in December, and there is talk of passing another one soon, so it's worth looking to see if the December package managed to help put people back to work or at least prevented any backsliding as the rate of COVID-19 spread has worsened over the winter. Look out for employment numbers released this upcoming Friday.
Markets Closed in Mexico for Constitution Day.
German Retail Sales (December).
Germany Manufacturing PMI (January).
French Manufacturing PMI (January).
Italian Manufacturing PMI (January).
U.K. Manufacturing PMI (January).
Eurozone Manufacturing PMI (January).
Eurozone Unemployment Rate (December).
U.S. Institute for Supply Management Manufacturing (ISM) PMI (January).
Tuesday, February 2:
Pfizer (PFE), Alphabet (GOOG/GOOGL), ExxonMobil (XOM), Amazon (AMZN), Alibaba (BABA) Report Earnings.
Eurozone Preliminary Gross Domestic Product (GDP) (Q4).
Brazilian Industrial Production (December).
Japanese Services PMI (January).
Chinese Caixin Services PMI (January).
Wednesday, February 3:
European Central Bank (ECB) Monetary Policy Statement.
U.K. Services and Composite PMIs (January).
German Services PMI (January).
French Services PMI (January).
Italian Services PMI (January).
Eurozone Market Composite PMI (January).
U.S. ISM Non-Manufacturing PMI (January).
Thursday, February 4:
Ford (F) and Snap (SNAP) Report Earnings.
U.K. Construction PMI (January).
Bank of England QE and Interest Rates Announcement.
U.S. Factory Orders (December).
Japanese Household Spending (December).
Friday, February 5:
Reserve Bank of India Interest Rate Decision.
German Factory Orders (December).
U.S. Nonfarm Payrolls (January).
U.S. Workforce Participation Rate (January).
U.S. Unemployment Rate (January).
U.S. Trade Balance (December).
Canadian Trade Balance (December).
Canadian Employment Change and Unemployment Rate (January).
Canadian Ivey PMI (January.)
Earnings Seasons Continues
Earnings season continues this week as another slate of big names report earnings. On Tuesday, the remaining tech titans weigh in with Alibaba, Amazon, and Google's parent company, Alphabet, all reporting earnings. Notably, all of them have been increasingly trying to push into the cloud-computing space. Amazon has been raking in money with its AWS business, with its comparably comfortable margins versus the famously razor-thin margins of Amazon's ecommerce business. Alphabet and Alibaba have their own cloud businesses, which they are working to expand, hoping to cash in on the expanding demand for cloud services. See how all three companies are able to expand in this competitive, but lucrative arena this week. Also, after Alphabet was hit with an antitrust lawsuit over its acquisition practices last August, the EU has filed antitrust charges against Amazon, and China has launched an antitrust probe into Alibaba. So tune into earnings calls to see how these companies respond to queries about these unfolding antitrust issues.
If you're interested in a less in-favor sector, energy giant ExxonMobil also reports earnings Tuesday. With the enormous decline in oil prices, first from the Russian-Saudi price war then the COVID-19 pandemic's economic disruption, Exxon has taken large losses. However, there has been one bright spot in its segments, and that is its chemicals business. Its chemicals business is different because unlike Exxon's upstream oil drilling business, it benefits from lower oil prices, because it uses oil as an input, not an output. That is also true of Exxon's downstream refinery businesses; however, oil prices dropped because the demand for gasoline, jet fuel, and other refined petroleum products dropped immensely due to the pandemic restricting travel, so refineries aren't in a position to take advantage of the wider margins.
How Are UK Businesses Feeling Post-Brexit?
This Monday the purchasing managers' index (PMI) for U.K. manufacturers is released and on Wednesday the PMI for businesses in the services sector is released. This will be the first PMI after the U.K. exited the EU single market. While the U.K.'s exist from the EU technically happened at the end of Jan. 2020, the U.K. stayed under EU rules, within the EU single market until the end of 2020, during which a new trade deal was reached. While the deal, named the Trade and Cooperation Agreement (TCA) ensures tariff and quota free trade in goods, it does little to address trade in services. In addition, new customs barriers for goods are still making trade in goods more difficult. PMI's survey how people across the business world are feeling and this is the first such check in under the new treaty.
US Unemployment Rate
The U.S. economy is still clearly ailing with unemployment at elevated levels. The $900 billion stimulus package passed in December, and there is talk of passing another one soon, so it's worth looking to see if the December package managed to help put people back to work or at least prevented any backsliding as the rate of COVID-19 spread has worsened over the winter. Look out for employment numbers released this upcoming Friday.