The wave of earnings reports continues
The wave of earnings reports continues apace this week, with more than 60 S&P 500 companies scheduled to report quarterly results. Numbers from a few $100 billion-plus market-cap companies are on the schedule, including Coca-Cola on Tuesday, Cisco Systems on Wednesday, and Applied Materials and Deere on Thursday.
Earnings season is now more than halfway complete
Earnings season is now more than halfway complete, with about 60% of S&P 500 index companies having announced their fourth-quarter results.
The economic highlight of the week comes Tuesday with the release of January’s consumer price index
The economic highlight of the week comes Tuesday with the release of January’s consumer price index. Economists expect the CPI to show a 2.9% year-over-year rise, half a percentage point less than in December.
Monday 2/12
Arista Networks, Cadence Design Systems, Principal Financial Group, and Waste Management release quarterly results.
Tuesday 2/13
Airbnb, American International Group, Biogen, Coca-Cola, DaVita, Ecolab, EQT, Hasbro, Howmet Aerospace, Marriott International, MGM Resorts International, Molson Coors Beverage, Moody’s, Shopify, Waste Connections, Welltower, and Zoetis report earnings.
The Bureau of Labor Statistics releases the consumer price index for January. Consensus estimate is for the CPI to rise 2.9% year over year, half a percentage point less than in December. The core CPI, which excludes volatile food and energy prices, is expected to rise 3.7%, compared with 3.9% previously. The annualized change in the core CPI is at its lowest level since May 2021.
The National Federation of Independent Business releases its Small Business Optimism Index for January. The index was at 91.9 in December, marking the 24th straight month below the 50-year average of 98.
Wednesday 2/14
Albemarle, CF Industries, Cisco Systems, CME Group, Energy Transfer, Equinix, Generac Holdings, Global Payments, Kraft Heinz, Martin Marietta Materials, Occidental Petroleum, Sony Group, Tyler Technologies, and Williams Cos. announce quarterly results.
Thursday 2/15
Applied Materials, CBRE Group, Consolidated Edison, Coinbase Global, Deere, Digital Realty Trust, DoorDash, DraftKings, EPAM Systems, Genuine Parts, Ingersoll Rand, Southern Co., and Stellantis release earnings.
The Census Bureau reports retail sales data for January. Economists forecast a 0.2% month-over-month decline in consumer spending, following a 0.6% increase in December. Excluding autos, retail sales are seen edging up 0.1%, three-tenths of a percentage point less than in December.
The National Association of Home Builders releases its Housing Market Index for February. The consensus call is for a 46 reading, two points more than in January.
Friday 2/16
NatWest Group, PPL, and Vulcan Materials hold conference calls to discuss quarterly results.
The University of Michigan releases its Consumer Sentiment Survey for February. Expectations are for a 79 reading, even with the December figure. Consumers’ expectations for the year ahead inflation was 2.9% in December, the lowest level in three years.
The BLS releases the producer price index for January. The PPI and core PPI are both expected to increase 0.1% month over month. The PPI declined 0.1% in December, while the core PPI was flat. In December, the year-over-year change in the core PPI was 1.8%, the lowest reading since late 2020.
Analyst comment
Positive news: The wave of earnings reports continues, with over 60 S&P 500 companies scheduled to report quarterly results. Earnings season is more than halfway complete, with about 60% of S&P 500 companies announcing their Q4 results. The consumer price index for January is set to be released, with economists expecting a 2.9% YoY rise, lower than in December. The small business optimism index for January will also be released.
Negative news: The Bureau of Labor Statistics is expected to release a lower core CPI, indicating a decrease in consumer spending. The retail sales data for January is forecasted to show a decline in consumer spending.
Neutral news: Various companies are scheduled to release their quarterly results, and the Housing Market Index for February is expected to show a slight increase. The University of Michigan will release its Consumer Sentiment Survey for February, which is anticipated to be unchanged from December. The producer price index for January is also set to be released.
