Get ready, next week is a big event. You’ll see a lot of quarterly reports as this earnings season gets into full swing. Also available are some key macroeconomic reports that influence investor thinking about the future course of the Federal Reserve. The two economic reports that deserve the most attention are Thursday’s ‘pre-estimate’ of fourth-quarter GDP and Friday’s personal consumption report, especially the yearly change in the core PCE price index (the Fed’s favorite inflation indicator). We expect numbers to match or be slightly weaker than economists’ expectations. This shows that the Fed rate hikes are working. But we don’t want to see numbers far below expectations. This could mean that the Fed has gone too far, too fast, and has raised concerns that the economy is headed for a hard landing and a deep recession. The central bank is about to stick a needle. Within the portfolio, we get the latest earnings from Danaher (DHR), Halliburton (HAL) and Johnson & Johnson (JNJ) before Tuesday’s opening bell. Microsoft (MSFT) will report Tuesday after the bell. increase. Results are important as always, but I’m most interested in the earnings call with analysts and investors. Comments from management will likely determine the next direction for those names. On the phone, we listen to the latest on bioprocess inventory reductions as the drawdown here could be a short-term headwind. But that doesn’t affect our long-term view of life sciences companies. Strong earnings from Schlumberger (SLB) on Friday bode well for Halliburton. For oil companies, current demand is everything, and given years of underinvestment, demand seems very strong. Johnson & Johnson continues to be our favorite stock ahead of earnings, as noted in our January monthly meeting (and in our quick update). Not bad compared to the S&P 500, but the stock hasn’t moved much over the past year. Shareholder. For Microsoft, we’re looking at profit margins and capex as spending in the technology sector is a big issue on investors’ minds. We also want to see Azure revenue growth as this is one of the most important items in the report. Keep in mind that Microsoft will not provide further guidance until after management’s prepared remarks on the conference call. January 23 (Mon) Before Bell: Baker Hughes (BKR), Synchrony Financial (SYN) After Bell: Brown & Brown (BRO), Crane (CR)), Logitech (LOGI), Zions Bancorp (ZION) Before the Bell on Tuesday, January 24: General Electric (GE), 3M (MMM), DR Horton (DHI), Lockheed Martin (LMT), Travelers (TRV), Union Pacific (UNP), Verizon (VZ) Bell’s After: Canadian National Rail (CNI), Capital One (COF), Intuitive Surgical (ISRG), Texas Instruments (TXN) 9:45 AM ET: Flash PMI Wednesday, January 25 Bell: Abbott Labs (ABT), ASML (ASML), AT&T (T). ADP (ADP), Boeing (BA), Elevance Health (ELV), Freeport McMorran (FCX), General Dynamics (GD), Group 1 Auto (GPI), Hess (HES), Kimberly-Clark (KMB), NextEra Energy (NEE), Norfolk Southern (NSC), Teledyne (TDY), Textron (TXT), Progressive (PGR) After Bell: Ameriprise (AMP), Crown Castle (CCI), CSX (CSX), Flex (FLEX), IBM (IBM), Lam Research (LRCX), Las Vegas Sands (LVS), Levi Strauss (LEVI), Packaging Corp (PKG), Seagate (STX), ServiceNow (NOW), Tesla (TSLA), United Rentals (URI), Whirlpool (WHR) Before the Bell on Thursday, January 26: Volvo (VLVLY), Alaska Airlines (ALK), American Airlines (AAL), Archer Daniels (ADM), Blackstone (BX) , Comcast (CMCSA), Dowchem (DOW) ), JetBlue Air (JBLU), Marsh & McLennan (MMC), Mastercard (MA), McCormick (MKC), Mobileye (MBLY), Nokia (NOK), Northrop Grumman (NOC), Nucor (NUE), Rockwell Automation (ROK) ), SAP (SAP), Sherwin-Williams (SHW), Southwest Air (LUV), STMicroelectronics (STM), Valero (VLO), Tractor Supply ( TSCO) after the bell: Eastman Chemical (EMN), Intel (INTC), KLA Corp (KLAC), L3Harris (LHX), Olin Corp (OLN), Visa (V) 8:30 AM ET: Initial Billing 8:30 a.m. ET: Durable Goods Orders 8:30 a.m. ET: Gross Domestic Commodities (Preliminary Estimates for Q4 2022) Before the Bell on Friday, Jan 27: American Equity Express (AXP), Booz Allen (BAH), Chevron (CVX), Charter.com (CHTR), Colgate-Palmolive (CL) 8:30 am ET: Personal Spending & Income 10:00 am ET: Pending Home Sale Looking Back Markets were mixed this holiday-shortened trading week as earnings season kicked off and new signs of economic growth were definitely slowing. The Nasdaq posted a slight gain of 0.55% while the Dow fell 2.7% of him and the S&P 500 fell about 0.66%. But bad news is good news in this market. Hopefully we are nearing the end of the Fed’s rate hike cycle. On Wednesday, the Producer Price Index showed him down 0.5% in December. This is well above expectations for a monthly decline of 0.1% and is the largest monthly decline since April 2020. Excluding food and energy, Core PPI rose 0.1%, as expected. Also, his December retail sales on Wednesday showed his 1.1% decline, just above expectations of 1%. His December industrial production, also released on Wednesday, showed a 0.7% decline, above the expected 0.1% decline. On the other hand, occupancy rate reached 78.8%, below the forecast of 79.5%. Notably, the November industrial production measure was revised down significantly to show a monthly decline of 0.6%, from a previously reported decline of 0.2%. On Thursday, initial unemployment claims for the week ending Jan. 14 were 190,000, down 15,000 from the previous week and below the expected 214,000. Housing starts fell 1.4% in December to a seasonally adjusted annualized rate of 1.38 million, slightly above the 1.36 million expected. Building permits fell 1.6% in December to a seasonally adjusted annual rate of 1.33 million, below the forecast of 1.37 million. And on Friday, existing home sales fell 1.5% in December to a seasonally adjusted annualized rate of 4.02 million units, the slowest pace since November 2010. Inside, communication services led upwards, followed by energy and technology. Industrial stocks fell, followed by utilities and consumer goods. Meanwhile, the USD index remains stuck at the 102 level. Gold remains in the low $1,900s per ounce. WTI oil prices are hovering around $80 a barrel, while 10-year government bonds yield around 3.5%. Within the portfolio, we received earnings results from Morgan Stanley (MS) and Procter & Gamble (PG). (For a complete list of Jim Cramer’s Charitable Trust shares, see here.) Subscribers to Jim Cramer’s CNBC Investing Club receive trade alerts before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling shares in his charitable trust portfolio. If Jim talks about his stock on his CNBC TV, he will wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duty or obligation exists or is created by your receipt of any information provided in connection with The Investment Club. No specific results or benefits are guaranteed.
A screen on the trading floor of the New York Stock Exchange (NYSE) shows the Federal Reserve during a press conference after it announced that it would raise interest rates by half a percentage point on December 14, 2022 in New York City. Board Chairman Jerome Powell is shown.
Andrew Kelly | Reuters
Get ready, next week is a big event. You’ll see a lot of quarterly reports as this earnings season gets into full swing. Also available are some key macroeconomic reports that influence investor thinking about the future course of the Federal Reserve. .
