Fourth-quarter earnings season heats up this week, as more than 70
S&P 500
firms report their results for the final three months of 2023. The highlights on the economic calendar will include inflation data and a first look at fourth-quarter U.S. economic growth.
On Wednesday,
Tesla,
AT&T,
and
IBM
will report.
Comcast,
Visa,
American Airlines,
and
Intel
release results on Thursday, then
American Express
closes the week on Friday.
The most-watched economic data release this week will be the Bureau of Economic Analysis’ personal-consumption expenditures price index for December on Friday. The core PCE, which excludes volatile food and energy prices and is the preferred inflation measure of the Federal Reserve, is seen rising 3%, slightly less than it did in November.
Other data out this week will include the Conference Board’s Leading Economic Index for December on Monday, S&P Global’s Manufacturing and Services Purchasing Managers’ indexes for January on Wednesday, and the BEA’s advance estimate of fourth-quarter gross domestic product growth on Thursday.
The European Central Bank will publish a monetary-policy decision on Thursday, ahead of the next meeting of the Federal Open Market Committee from Jan. 30-31. Both central banks are widely expected to keep their interest-rate targets unchanged this month.
Monday 1/22
United Airlines Holdings and
Brown & Brown
release quarterly results.
The Conference Board releases its Leading Economic Index for December. Consensus estimate is for a 0.3% month-over-month decline. The LEI has fallen for 20 consecutive months and the Conference Board forecasts a short and shallow recession in the first half of this year.
Tuesday 1/23
3M,
Baker Hughes,
D.R. Horton,
General Electric,
Halliburton,
Invesco,
Johnson & Johnson, Lockheed Martin, Netflix, Procter & Gamble,
RTX,
Texas Instruments,
and Verizon Communications report earnings.
Wednesday 1/24
Abbott Laboratories,
ASML Holding,
Ameriprise Financial,
Amphenol,
AT&T,
Crown Castle,
CSX,
Elevance Health,
Freeport-McMoRan,
General Dynamics,
IBM,
Kimberly-Clark,
Lam Research,
Las Vegas Sands,
SAP,
ServiceNow,
TE Connectivity,
and Tesla announce quarterly results.
S&P Global releases both its Manufacturing and Services Purchasing Managers’ indexes for January. Economists forecast a 47.7 reading for the Manufacturing
PMI
and a 51 reading for the Services PMI. Both estimates are slightly less than the December data.
Thursday 1/25
American Airlines Group,
Blackstone,
Capital One Financial,
Comcast, Dow,
Humana,
Intel,
KLA,
L3Harris Technologies,
Marsh & McLennan,
McCormick,
NextEra Energy,
Northrop Grumman,
Sherwin-Williams,
Southwest Airlines,
T-Mobile US,
Union Pacific,
Valero Energy,
Visa, and
Weyerhaeuser
release earnings.
The European Central Bank announces its monetary-policy decision. The central bank is widely expected to keep its key short-term interest rate unchanged at 4%. As with the Federal Reserve, the ECB is likely done raising interest rates for this cycle. Now the markets’ attention has turned to when they will begin cutting interest rates.
The Bureau of Economic Analysis releases its advance estimate of fourth-quarter gross domestic product growth. Consensus estimate is for GDP to have increased at a seasonally adjusted annual rate of 2%, after a 4.9% growth rate in the third quarter. U.S. GDP is expected to grow 2.4% for 2023 compared with 2022 levels.
The Census Bureau reports new-home sales for December. Expectations are for a seasonally adjusted annual rate of 647,000 homes sold, 57,000 more than in November.
Friday 1/26
American Express,
Colgate-Palmolive,
and
Norfolk Southern
hold conference calls to discuss quarterly results.
The BEA releases the personal-consumption expenditures price index for December. Economists forecast a 2.6% year-over-year increase, matching the November data. The core PCE, which excludes volatile food and energy prices, is seen rising 3%, two-tenths of a percentage point less than previously. The year-over-year change in the core PCE is at its lowest level since March 2021 and is running at an annualized 1.9%, just below the Fed’s 2% inflation target, over the past six months.
The National Association of Realtors releases its Pending Home Sales index for December. The consensus call is for the PHS index, a leading indicator of housing activity, to increase 2% month over month, after being flat in November.
—Dan Lam contributed to this article
Write to Nicholas Jasinski at [email protected]
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