Monday January 9, 2023: $130.15 +$0.53 +0.41%
Jan 9, 2023 2:12:28 GMT -8
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Post by Dave on Jan 9, 2023 2:12:28 GMT -8
Good morning, it’s Monday. And we have a green pre-market at +0.49% at this moment.
What to Expect in the Markets Next Week
What to Expect in the Markets Next Week
Events Calendar:
Monday, January 9
Jefferies Financial Group (JEF), Commercial Metals Company (CMC), Acuity Brands (AYI), and PriceSmart Inc. (PSMT) report earnings
Consumer Inflation Expectations (Dec)
Tuesday, January 10
Albertsons Companies (ACI) and Bed Bath & Beyond (BBBY) report earnings
NFIB Business Optimism Index (Dec)
IBD/TIPP Economic Optimism Index (Jan)
Wholesale Inventories (Nov)
Wednesday, January 11
Infosys Limited (INFY), Wipro Limited (WIT), and Shaw Communications Inc. (SJR) report earnings
China Inflation Rate (Dec)
Thursday, January 12
Taiwan Semiconductor Manufacturing Company (TSM) and Washington Federal Inc. (WAFD) report earnings
CPI Inflation Rate (Dec)
Friday, January 13
UnitedHealth Group (UNH), JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), BlackRock (BLK), Citigroup (C), Bank of New York Mellon (BK), First Republic Bank (FRC), and Delta Air Lines (DAL) report earnings
Michigan Consumer Sentiment Index - Preliminary Reading (Jan)
U.K. Gross Domestic Product (MoM, Nov)
The Latest Inflation Figures
On Friday, the Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) for December, offering the latest update on consumer inflation in the U.S. Prices likely rose 0.1% last month, matching November’s gain. On an annual basis, price growth is anticipated to have decelerated to 6.5%, down from 7.1% in December and compared to a 40-year high of 9.1% in June. This would mark the slowest annual inflation rate since October of 2021. A sharp deceleration in inflation could have significant implications for the Federal Reserve’s rate-setting agenda, as Fed officials may consider easing their monetary tightening campaign ahead of the next meeting of the Federal Open Market Committee (FOMC) at the end of January.
Financial Sector Earnings
Corporate earnings season begins next week with earnings from big banks and financial institutions. Financial firms including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and BlackRock are scheduled to report fourth-quarter earnings on Friday. We can also expect earnings reports from Taiwan Semiconductor Manufacturing Company, UnitedHealth Group, and Delta Air Lines, among others.
Next week’s earnings reports from the financial sector could offer clues as to how the Federal Reserve’s rate hikes are impacting banks’ profitability. Banks tend to benefit from rising interest rates, as their net interest margins—the difference between interest income earned through investments and interest payments to customers—tend to improve.
Fourth-quarter earnings for S&P 500 companies are projected to have declined 4.1% last quarter amid growing concerns about a recession in the U.S. as interest rates rise, according to FactSet. If this estimate holds, it would mark the first annual decline in earnings since the third quarter of 2020, when earnings fell 5.7% from a year earlier.
Of the companies issuing EPS guidance, 65 have issued negative guidance while just 35 have issued positive guidance. Analysts’ estimates for earnings growth have been downgraded steeply in recent months. In late September, the median projection for fourth quarter earnings growth stood at 3.5%.
Monday, January 9
Jefferies Financial Group (JEF), Commercial Metals Company (CMC), Acuity Brands (AYI), and PriceSmart Inc. (PSMT) report earnings
Consumer Inflation Expectations (Dec)
Tuesday, January 10
Albertsons Companies (ACI) and Bed Bath & Beyond (BBBY) report earnings
NFIB Business Optimism Index (Dec)
IBD/TIPP Economic Optimism Index (Jan)
Wholesale Inventories (Nov)
Wednesday, January 11
Infosys Limited (INFY), Wipro Limited (WIT), and Shaw Communications Inc. (SJR) report earnings
China Inflation Rate (Dec)
Thursday, January 12
Taiwan Semiconductor Manufacturing Company (TSM) and Washington Federal Inc. (WAFD) report earnings
CPI Inflation Rate (Dec)
Friday, January 13
UnitedHealth Group (UNH), JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), BlackRock (BLK), Citigroup (C), Bank of New York Mellon (BK), First Republic Bank (FRC), and Delta Air Lines (DAL) report earnings
Michigan Consumer Sentiment Index - Preliminary Reading (Jan)
U.K. Gross Domestic Product (MoM, Nov)
The Latest Inflation Figures
On Friday, the Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) for December, offering the latest update on consumer inflation in the U.S. Prices likely rose 0.1% last month, matching November’s gain. On an annual basis, price growth is anticipated to have decelerated to 6.5%, down from 7.1% in December and compared to a 40-year high of 9.1% in June. This would mark the slowest annual inflation rate since October of 2021. A sharp deceleration in inflation could have significant implications for the Federal Reserve’s rate-setting agenda, as Fed officials may consider easing their monetary tightening campaign ahead of the next meeting of the Federal Open Market Committee (FOMC) at the end of January.
Financial Sector Earnings
Corporate earnings season begins next week with earnings from big banks and financial institutions. Financial firms including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and BlackRock are scheduled to report fourth-quarter earnings on Friday. We can also expect earnings reports from Taiwan Semiconductor Manufacturing Company, UnitedHealth Group, and Delta Air Lines, among others.
Next week’s earnings reports from the financial sector could offer clues as to how the Federal Reserve’s rate hikes are impacting banks’ profitability. Banks tend to benefit from rising interest rates, as their net interest margins—the difference between interest income earned through investments and interest payments to customers—tend to improve.
Fourth-quarter earnings for S&P 500 companies are projected to have declined 4.1% last quarter amid growing concerns about a recession in the U.S. as interest rates rise, according to FactSet. If this estimate holds, it would mark the first annual decline in earnings since the third quarter of 2020, when earnings fell 5.7% from a year earlier.
Of the companies issuing EPS guidance, 65 have issued negative guidance while just 35 have issued positive guidance. Analysts’ estimates for earnings growth have been downgraded steeply in recent months. In late September, the median projection for fourth quarter earnings growth stood at 3.5%.