What will drive the markets this week?
Global equities closed lower last week as markets remained volatile, with the VIX volatility index, a popular measure of the stock market’s expectation of volatility based on S&P 500 index options, climbing over 50% last week as markets reacted to disappointing earnings from big tech firms, interest rate hikes and rising inflation.
The tech-heavy Nasdaq dropped into correction territory, falling over 10% from its most recent high while the Dow and S&P 500 closed out the week lower, in the third straight week of losses.
The earnings season continues this week with major companies, including IBM, Logitech, Microsoft, Johnson & Johnson, Verizon, Raytheon Technologies, American Express, General Electric, Lockheed Martin, Tesla, Intel, AT&T, Boeing, Apple, Visa, Mastercard, Comcast, McDonald’s Corporation, Blackstone, Northrop Grumman, Chevron, Caterpillar, Colgate-Palmolive, and Phillips 66, among others reporting. In monetary policy, the Federal Reserve will hold its first Federal Open Market Committee (FOMC) meeting for the year and analysts expect the Fed to confirm its move to hike interest rates in response to rising inflation.
Investors will also parse economic data, economic sentiments, and Manufacturing Indexes from across the world.
Monday, January 24:
- Earnings: IBM, Koninklijke Philips, and Logitech report.
- U.S. Markit Manufacturing and Services PMI, Flash (January)
- EA Markit Manufacturing and Services PMI, Flash (January)
Tuesday, January 25:
- Earnings: Microsoft, Johnson & Johnson, Verizon, Texas Instruments, NextEra Energy, Raytheon Technologies, American Express, General Electric, Lockheed Martin, 3M, and Capital One report.
- S&P Case-Shiller House Price Index (November)
- Conference Board Consumer Confidence Index (January)
- U.S. Federal Reserve FOMC Meeting Begins
Wednesday, January 26:
- Earnings: Tesla, Abbott Laboratories, Intel, AT&T, Boeing, ServiceNow, Automatic Data Processing, and Freeport-McMoran report.
- U.S. Wholesale and Retail Inventories (December)
- New Home Sales (December)
- China Industrial Profits (December)
- Japan Leading Economic Index (November)
Thursday, January 27:
- Apple, Visa, Mastercard, Comcast, Danaher, McDonald’s Corporation, Mondelez International, Marsh & McLennan, Blackstone, Sherwin-Williams, Atlassian, and Northrop Grumman report.
- U.S. Durable Goods Orders (December)
- U.S. Pending Home Sales Index (December)
Friday, January 28:
- Earnings: Chevron, Caterpillar, Charter Communications, Colgate-Palmolive, and Phillips 66 report.
- PCE Price Index (December)
- University of Michigan Consumer Sentiment Index, Final (January)
- EA Loans to Households and Businesses (December)
- EA Consumer Confidence Index (January)