Wall Street’s Focus on Economic Growth Indicators in the Week Ahead
On Wall Street in the week ahead, stock market investors’ major focus will be on the economic growth indicators such as pace of inflation, manufacturing PMI, and the overall state of the economy. With the recovery from the pandemic continuing to shape market sentiment, investors will closely monitor these key indicators for any signs of strength or weakness. These factors will play a crucial role in shaping investor sentiment and determining market trends in the coming weeks.
In addition, investors will also keep a close eye on upcoming earnings reports, which will provide insights into the performance of key companies. Some notable companies releasing their earnings reports include Tesla, Netflix, American Airlines, Abbott Laboratories, and IBM. The market’s reaction to these reports will be closely watched as it can impact the overall market sentiment and influence investment decisions.
Economic Data Releases and Market Updates
January 24 – The market will receive data for January on the S&P flash US services PMI and the S&P flash US manufacturing PMI. These indicators will provide an early glimpse into the health of the service and manufacturing sectors, offering insights into the overall state of the economy.
January 25 – The fourth quarter (Q4) gross domestic product (GDP) preliminary data will be released. Investors will be keen to analyze this data, as it offers a comprehensive overview of the country’s economic performance during the last quarter of the year. Additionally, new home sales data for December will also be released on the same day, providing insights into the state of the housing market.
January 26 – Data on PCE (personal consumption expenditures) index for December will be released. This indicator is closely monitored by investors as it reflects consumer spending patterns, which is a crucial driver of economic growth.
Earnings Reports to Watch
The week ahead will see a flurry of earnings reports from several notable companies. Some of the key companies due to release their quarter results include:
– Brown & Brown
– United Airlines Holdings
– Zions Bancorporation
– Johnson & Johnson
– Procter & Gamble
– Netflix
– Verizon Communications
– Texas Instruments
– General Electric
– Lockheed Martin
– Tesla
– Abbott Laboratories
– IBM
– AT&T
– General Dynamics
– Las Vegas Sands
– CSX
– Visa
– Intel
– Comcast
– Union Pacific
– American Airlines Group
– Southwest Airlines
– Levi Strauss
– Alaska Air Group
– American Express
– Colgate-Palmolive
– Norfolk Southern
– Autoliv
The market’s reaction to these earnings reports will shed light on the financial health and performance of these companies, influencing investor sentiment and potentially impacting stock prices.
Recent Market Performance
In the last trading session, the S&P 500 surged by 1.23%, closing at 4,839.81 points. The Nasdaq also posted significant gains, jumping 1.70% to reach 15,310.97 points. Meanwhile, the Dow Jones Industrial Average rose by 1.05%, ending the session at 37,863.80 points. These gains reflect the positive market sentiment driven by several factors, including the overall optimism surrounding economic recovery and strong earnings reports from various companies.
Other market indicators demonstrate mixed performance. The US dollar weakened slightly against the Japanese yen, falling to 148.19 yen from 148.24 yen. On the other hand, the euro strengthened, rising to $1.0893 from $1.0861. The yield on the 10-year Treasury also edged down on Friday to 4.13%.
In terms of commodities, the US crude oil benchmark for February delivery experienced a decline of 67 cents, reaching $73.41 per barrel. Similarly, Brent crude for March delivery fell by 54 cents to settle at $78.56 per barrel. However, gold for February delivery saw gains, rising by $7.70 to $2,029.30 per ounce. Silver for March delivery, however, experienced a slight decline, falling by 10 cents to $22.71 per ounce.
It remains to be seen how these recent market trends and performances will influence investor sentiment and shape the trading landscape in the week ahead.
These developments will be closely monitored by investors and market participants as they navigate the ever-changing dynamics of the stock market and make informed investment decisions.
Published: 21 Jan 2024, 08:45 PM IST
Analyst comment
Neutral news.
As an analyst, the market will likely react to the economic growth indicators and earnings reports in the week ahead. Positive results could boost investor sentiment and drive market trends, while negative results could lead to cautiousness. It is important to closely monitor the market’s reaction to these indicators and reports, as it will impact investment decisions in the coming weeks.
