What to know this week


The S&P 500 (^Gspc) I have just made his first four days of negotiation under a new president since the first week of Ronald Reagan in 1985.

The following week will bring to the investors a deluve of news that will test this rally.

Earnings of more than 100 S&P 500 members, prominent due to the heavy technology meta (Tech (Goal), Microsoft (Msft), Apple (AAPL), and Tesla (Tanth) – They are preparing for publication, with Wednesday that serves as more crowded of the week. Starbucks (Also numassa), Exxon (Shower), and Chevron (CVX) They are also planned to inform.

On Wednesday afternoon, the Federal Reserve will also announce its latest monetary policy decision, with the Central Bank planned to maintain unchanged interest rates and investors focused on what the President of the Fed Jay Powell has to say. About the balance of 2025.

Last week, the S&P 500, Nasdaq Composite (^Ixic), and the industrial average of Dow Jones (^Dji) Each met for a four-day negotiation week. For the last five days, the S&P 500 and DOW have gained more than 2.8%; The Technology Index leads the gain during this period, increasing more than 3.1%.

Tuesday, markets met as a dollar fall After Trump kept firing the universal rate barrier, some were waiting for the first day in office.

Citi Equity strategist, Scott Chronert, wrote on Friday in a note to customers that throughout the week the volatility involved in the rates, the North -American dollar and the oil were reduced.

“The prices of some catalysts for disadvantaged politics were a phenomenon of cross -assets,” said Chronert. “So far, we have seen less macro disruption than expected initially.”

On Wednesday, Trump caused a rally from AI after he announced it A new $ 500 million private sector investment called “Stargate” to build artificial intelligence infrastructure in the United States, with Oracle (OrCl), Creator of Chatgpt Openai and Japanese Softbank conglomerate (9984.t) Among those who commit to the joint company.

Oracle and Softbank – along with Microsoft and Nvidia (Nvda) – gathered in the news.

In the first week, not only the fears of the market on the rates did not realize, but the trade of AI still returned to the helm. A comfortable start for Trump’s second administration.

With a further week of market news, investors focus on Trump’s policies will be tested, as the Fed Moving announcement typically highlights the economic news of the week.

Data from CME Group shows The markets are priced at almost 100% chance for the Central Bank to keep the rates constant when it publishes its last policy decision on Wednesday at 14:00 ET. Powell’s press conference, scheduled to start at 14:30 ET, is probably the largest source of market volatility.

This past Thursday, Trump said in a virtual appearance at the Davos World Economic Forum that, with oil prices, “would require that interest rates would go down immediately.” These comments Hectic discussion about a possible clash with the Federal Reserve.

However, the press conference may be less exciting than normal, according to the economist of the North Cape -American of Jpmorgan, Michael Feroli. “Powell’s post-re-re-re-re-re-re-re-re-re-re-released show has been stolen by FOMC Day in recent years,” Feroli wrote.

“For next week, however, we hope to take more duck and coverage approach.” In particular, we expect to indicate that each participant of the Committee uses their own cases of conditioning on which commercial policies are ultimately adopted and this is the only thing that was decided at the meeting was the declaration of the agreed monetary policy. next Wednesday “

Washington, January 24, 2018 - The photo of the archive taken on November 2, 2017 shows the President of the United States Donald Trump (L) and the governor of the Federal Reserve Jerome Powell in a candidate ceremony at the White House. of Washington DC, the United States. The North Senate -american confirmed Jerome Powell as the following president of the Federal Reserve on January 23, 2018 (Xinhua/Yin Boga through Getty Images)
President Donald Trump (L) and Federal Reserve Governor Jerome Powell in a Nomination ceremony at the Washington DC White House in 2017 (Xinhua/Yin Boga through Getty Images) · Xinhua news agency through Getty Images

Several key readings on the health of the United States economy must also leave throughout the week.

On Thursday, it is expected that the first estimate of GDP in the fourth quarter shows that the North -American economy grew at an annual rate of 2.6% in the last three months of 2024, below the rate of 3.1% seen the previous quarter.

On Friday, it will have a new reading of the FED’s preferred inflation caliber, the personal consumption expenses index, with economists waiting for annual “nucleus” (which excludes the volatile categories of food and energy) that is’ They have reduced to 2.8% in December, unchanged from November. During the previous month, economists project “CORE” inflation PCE increased by 0.2%, faster than 0.1% seen in November.

RBC Capital Markets, Blake Gwinn, wrote to customers on Friday that data dumping at the end of the week, combined with Trump’s policies, could leave the Fed “playing the third fide” in the markets.

Gwinn argued that Trump’s comments or misery data could “quickly do anything that Powell said at the press conference next week.”

S&P 500 companies have had a strong start to the results season. The index is expected to grow by 12.7% compared to the year before the fourth quarter, according to FACTSET data.

But much of this growth is still based on the performance of the Technological stocks of “magnificent seven”. And four of these companies (Tesla, Meta, Microsoft and Apple) will report the following week.

It is expected that this group of seven technological actions will grow gains by 21.7% in the fourth quarter compared to the growth of the gain of 9.7% provided for the other 493 technological actions.

As shown by the following graph, this results growth gap is expected to be released throughout 2025, which led to many capital strategies in Call an extension of the market rally out of high -capacity technology.

Although, as Venu Krishna, the head of the United States Capital Strategy in Barclays, he said their perspective of 2025As the great growth of the results provided for Big Tech throughout the year, the group “is likely to be as critical of an EPS growth engine for the S&P 500 as the group (2024)”.

Above all, the growth of gains from the SEVEN magnifica is expected to react in the second half of the year after a moderate slowdown in the first six months of the year.

Economic data: Chicago Fed National Activity Index, December (-0.12 above); New housing sales, month to month, December ( +6.6% provided, +5.9% above)

Earnings: AT&T (T), Core (Fork), Sofi (Sopi), Western Alliance Bancorporation (FordThat)

Economic data: Lasting goods, December (+0.8% provided, -1.2% above); FHFA House Price Index, month to month, November (+0.4% above), Corelogic House prices S&P Corelogic, index of 20 cities, tightly adjusted month to month, November (+0.3% planned,+ 0.32% above); Conference Board Confluence, January (105.6 planned, 104.7 previously); Richmond Fed Manufacture Index, January (-10 above)

Earnings: Boeing (Ba), General Motors (Gm), Jetblue (Jblu), Lockheed Martin (Lmt), Logitech (Window), Royal Caribbean Cruises (RCl), Know (Sap), Starbucks (Also numassa), Sysco (ReasonThat)

Economic data: MBA mortgage applications, the week ended on January 24 (+0.1% above); FOMC rate decision (no change is expected)

Earnings: Tesla (Tanth), Goal (Goal), Microsoft (Msft), ADP (ADP), Asml (Asml), General Dynamics (GD), IBM (IBM), Nasdaq (Only), Progressive (April), Servicenow (Now), T-Mobile (Tm), VF Corporation (VfcThat)

Economic data: Fourth Quarter GDP, first estimate ( +2.6% of the expected annual rate, +3.1% above); Personal consumption, advanced estimate of the fourth quarter ( +3.1% of the expected annual rate, +3.7% above); Core PCE, quarter -quarter, Estimate of advance of the fourth quarter (+2.2% above); FIRST CLAIMS UNDER WORK, January 25 (previous 223,000)

Earnings: Apple (AAPL), Blackstone (Bx), Caterpillar (Cat), Comcast (Cmcsa), Dow (Dowry), Deckers outdoors (Deck), Intel (Intc), Mastercard (Hand), Mobileye (Spring), Southwest Airlines (LUV), UPS (Ups), United States Steel (X), Visa (VThat)

Economic calendar: Index Core PCE, month a month, December ( +0.2% provided, +0.1% above); Index Core PCE, year -on -year, December (+2.8% provided, 2.8% above); Job index, fourth quarter (1% expected, 0.8% above)

Earnings: Nautical communications (Chr), Chevron (CVX), Colgate (Cl), Exxon Mobil (Shower), Phillips 66 (PsxThat)

Josh Schafer is Yahoo Finance Reporter. Follow -Lo Ax @_joshschaffer.

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