The Market Week Ahead: Jan. 28 – Feb. 1

 

Jan. 28 –   This week is is the peak of earnings season. We’re also getting a Federal Reserve meeting and we’ll start getting some of the economic data that was delayed by the government shutdown. 

The broader market tried to shake off this morning’s negative announcements from Caterpillar (CAT) and Nvidia (NVDA). Bad news out of Caterpillar in particular has been responsible for big market-wide losses in the past, so the reaction today is less negative than it could be. It will be interesting to see how the week progresses. Caterpillar typically gets a lot of attention because results there can be predictive of trends across the economy. 

Results from Nvidia is a bit less important to the entire economy, but the stock has been one of the leading lights of the stock market over the last several years, so seeing a $500 million cut to it’s revenue guidance seems significant. 

The Federal Reserve is widely expected to leave interest rates where they are this week, but Chairman Jerome Powell will be holding a press conference after the statement is released. The market has made some big moves based on comments Powell has made. Hopefully, Powell and the market are figuring each other out and we won’t see a wild swing from something Powell says that will have to be walked or revised later.

Economic Events this Week

We’re starting to get data again after the government shutdown.  

  • Wednesday
    • 8:30 a.m. – Pending Home Sales
    • 2:00 p.m. – FOMC Rate Decision
  • Thursday
    • 8:30 a.m. – Personal Income
    • 8:30 a.m. – Personal Spending
    • 8:30 a.m. – PCE Price Index
  • Friday
    • 8:30 a.m. – Nonfarm Payrolls
    • 8:30 a.m. – Average Hourly Earnings
    • 8:30 a.m. – Average Workweek
    • 8:30 a.m. – Unemployment Rate
    • 10:00 a.m. – ISM Manufacturing Index

Earnings Reports this Week

Lots of earnings reports this week. 

Tuesday:

  • Before the bell: PFE, VZ, SAP, MMM, LMT
  • After the bell: AAPL, AMGN, SYK, ILMN, EBAY

Wednesday:

  • Before the bell: BABA, BA, T, MCD, ANTM
  • After the bell: MSFT, FB, V, PYPL, QCOM

Thursday:

  • Before the bell: RDS.A, MA, DWDP, UPS, MO
  • After the bell: AMZN, AFL, EW, MCK, SYMC

Friday:

  • Before the bell: XOM, CVX, MRK, HON, SNE

Sector Analysis 

Strong Sectors past Month

These sectors are up 5% or more in the last 20 trading days:

  • Oil Services
  • Banks
  • Regional Banks
  • Solar
  • Biotech
  • Oil & Gas Exploration
  • Internet
  • Semiconductors
  • Robotics and Automation
  • Financials
  • Broker-Dealers
  • Metals & Mining
  • Coal
  • MLPs
  • Industrials
  • Real Estate
  • Retail
  • Homebuilders
  • Cyber Security
  • Consumer Discretionary
  • Energy
  • Financials
  • Insurance
  • Airlines
  • Medical Devices
  • Steel
  • Materials
  • S&P 500
  • Dow Jones Industrial Average
  • Nasdaq 100
  • Junior Gold Miners
  • Technology

Weak sectors past month

These sectors are down 5% or more in the last 20 trading days:

  • Volatility

Strong sectors past five trading days

These sectors are up 3% or more in the last five trading days.

  • Semiconductors
  • Solar
  • Gold Miners
  • Junior Gold Miners
  • Airlines
  • Regional Banks

Weak sectors past five trading days

These sectors are down 3% or more in the last five trading days.

  • Oil & Gas Exploration

Bobby Raines

Bobby Raines

Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at braines@marketintelligencecenter.com or follow him on Twitter: @BRatMICenter.

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