Holiday Pause With A Busy Week For Earnings And Economic News Looming

The trading week is off to a quiet start so far as is common when US markets are closed, in this case for Martin Luther King Day. US index futures are trading flat to down 0.1%, while major European indices are trading down 0.25% to 0.50%.

Energy markets are more active with US Crude Oil down 1.6% and Natural Gas down 5.3% despite continuing hostilities in the Middle East and much of North America in a deep freeze. Metals are rising today with Gold up 0.25% and Copper up 0.50%.

Earnings reports resume tomorrow with results due from investment banks Goldman Sachs and Morgan Stanley, who likely benefitted from the late 2023 market rally. The earnings calendar for the rest of the week is dominated by US regional banks, and other financials like credit card companies. Toward the end of this week we see a few airlines and industrials start to report but earnings season for non-financials really gets going next week.    

So far investors appear to be in a “take profits against the news” mood. On Friday most of the 7 most notable companies which reported beat the street on earnings. Guidance was mixed and 5 of the 7 lost ground and finished in the red on Friday. The worst decliner was Delta Air Lines with a 9.0% loss, while the biggest gainer was Citigroup with a 1.0% rise. Also, cryptocurrency exchange Coinbase lost another 7.3% Friday, a day after the mainstream debut of Bitcoin ETFs.

It’s also looking to be a busy week for economic news. The main focus is on retail sales with US and China reporting Wednesday, followed by the UK and Canada on Friday. China Q4 GDP is also out on Wednesday. Other notable reports include inflation numbers for Canada and the UK over the next two days, several US housing market indicators and a number of US regional economic surveys.   

SIA Wealth In The Media

Portfolio Manager and Chief Market Strategist recently appeared on BNN Bloomberg where he spoke about current trends in world market heading into earnings season. Replay links are available below:

U.S. presidential cycle has been volatile since 2000: Cieszynski

U.S. bank earnings preview

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