What To Expect in the Markets This Week

Key takeaways

  • Inflation data released Tuesday will come as Federal Reserve officials closely monitor signals to cut interest rates.
  • Retail sales data on Thursday and Consumer Confidence Survey data on Friday will show whether U.S. shoppers remain confident.
  • Coca-Cola Co., Cisco Systems Inc. and Stellantis NV will report results this week.

As earnings reports continue to come in throughout the week, market watchers will be tuning in for the latest inflation numbers when the Consumer Price Index (CPI) is released on Tuesday. After rising last month, Federal Reserve officials are watching for other signs that inflation is continuing its downward trend.

Thursday's retail sales figures will help determine whether consumers maintained their strong purchasing habits in January. At the same time, the Home Builder Confidence Index will indicate whether favorable residential construction trends are continuing.

Several companies will report earnings this week, including Coca-Cola Co., Cisco Systems Inc. and Stellantis NV.

Monday February 12

  • Arista Networks Inc. (ANET) and Cadence Design Systems Inc. (CDNS) report results
  • Monthly U.S. Federal Budget Statement (January)

Tuesday February 13

  • Coca-Cola (KO), Moody's Corp. (MCO), Shopify Inc. (SHOP), Airbnb Inc. (ABNB) and Marriott International Inc. (MAR) report results.
  • Consumer Price Index (CPI) (January)

Wednesday February 14

  • Cisco (CSCO), Sony Group Corp. (SONY) and Kraft Heinz Co. (KHC) report results

Thursday February 15

  • Applied Materials Inc. (AMT), Stellantis (STLA), Occidental Petroleum Corp. (OXY), John Deere & Co. (DE), DoorDash Inc. (DASH), CBRE Group Inc. (CBRE), Coinbase Global Inc. (COIN) and DraftKings Inc. (DKNG) report results
  • Initial Unemployment Claims (week ending February 10)
  • US retail sales (January)
  • Import Price Index (January)
  • Industrial production (January)
  • Capacity utilization (January)
  • Home Builder Confidence Index (February)

Friday February 16

  • Producer Price Index (PPI) (January)
  • Construction starts (January)
  • Building permit (January)
  • Michigan Consumer Confidence Index (February preliminary)

Fed officials to closely monitor inflation data

As the Federal Reserve closely monitors inflation developments, Tuesday's consumer price index is expected to provide clues that price growth will continue to slow.

While inflation has been on a downward trend, the most recent CPI figures showed a slight rise in prices in December, with annual growth of 3.4%. Since then, other measures of inflation have shown a deceleration in inflation, so investors will be watching to see if the trend continues.

The Federal Reserve voted to maintain interest rates at its last meeting. Several officials said last week that they would closely monitor inflation data to see if it continues to trend toward the 2% target.

Earnings reports provide a window into economic conditions across industries

A series of earnings reports this week will give investors insight into a wide range of components of the economy, from consumer staples to commercial real estate.

Two components of the Dow Jones Industrial Average (DJIA) are expected to release their quarterly financial statements this week. Beverage giant Coca-Cola revealed Tuesday whether it had continued its sales momentum, while computer networking equipment maker Cisco on Wednesday looked to rebound after reporting a slowdown in product orders last quarter.

The report from Jeep maker Stellantis released Thursday comes after the automaker negotiated a new contract with its workers last fall, ending a six-week strike.

John Deere's results released Thursday will give investors a window into the agricultural sector. Meanwhile, DoorDash's profits will show the strength of the gig economy as the food delivery service app attempts to add more users.

Another company investors could watch is CBRE Group, a commercial real estate company that could shed some light on the sector with its earnings report on Thursday. The industry's situation has raised concerns that some regional banks like New York Community Bancorp Inc. (NYCB) are too exposed to market weakness.

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