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1_14_24 Weekend Update

1_14_24 Weekend Update

January 15, 2024

Last Week's Market Activity (Jan 8th - Jan 13th):

General Sentiment:

  • Positive: Major indices climbed despite mixed economic data, driven by optimism about easing inflation and potential for future rate cuts by the Federal Reserve.
  • Volatility: Relatively low, with daily fluctuations within usual ranges.

Sector Performance:

  • Tech: Outperformed, as strong earnings reports from major tech companies fueled investor confidence.
  • Energy: Declined slightly due to a dip in oil prices.
  • Financials: Mixed performance, with some banks gaining on positive earnings while others fell due to concerns about loan growth.
  • Consumer Staples: Relatively stable, reflecting continued demand for essential goods.

Key Events:

  • U.S. Consumer Price Index (CPI): Increased slightly year-over-year but slowed down from the previous month, reinforcing hopes for peak inflation.
  • Jobless claims: Slightly higher than expected, raising some concerns about the job market.
  • Earnings season: Several major companies, including Apple, Microsoft, and Alphabet, reported strong earnings, boosting investor sentiment.

Upcoming Market Moving Events (Jan 15th - Jan 20th):

Economic Data:

  • Empire State Manufacturing Survey (Jan 16th): Gauge of manufacturing activity in the New York region.
  • Retail Sales (Jan 17th): Indicator of consumer spending, a key driver of economic growth.
  • Industrial Production (Jan 17th): Measure of factory output, providing insights into manufacturing sector health.
  • Initial Jobless Claims (Jan 18th): Weekly data on unemployment claims, impacting sentiment about the labor market.
  • Consumer Sentiment (Jan 19th): Survey of consumer confidence, influencing spending behavior and market outlook.

Earnings Announcements:

  • Boeing (Jan 17th): Major aerospace manufacturer, its results could impact the defense and travel sectors.
  • Netflix (Jan 18th): Leading streaming service, its subscriber growth numbers will be closely watched.
  • Tesla (Jan 18th): Electric vehicle giant, its production and delivery figures will attract attention.
  • Johnson & Johnson (Jan 19th): Healthcare conglomerate, its performance has implications for the healthcare sector.

Potential Market Movers:

  • Fed speeches: Any comments from Federal Reserve officials on monetary policy could trigger market reactions.
  • Geopolitical developments: Ongoing events like the Ukraine war or tensions between China and Taiwan could impact oil prices and risk appetite.
  • Unexpected news or data: Unforeseen events or data releases could cause sudden market shifts.