What to Expect in the Week Ahead (Fed Minutes; PCE Inflation; NVDA, BABA, WMT Earnings)

Moomoo Breakfast US wrote a column · Feb 19, 2023 19:26

What to Expect in the Week Ahead (Fed Minutes; PCE Inflation; NVDA, BABA, WMT Earnings)

U.S. stock and bond markets will be closed for Presidents Day on Monday. After that, investors can look forward to a busy slate of earnings and economic data.

$Home Depot (HD.US)$, $Walmart (WMT.US)$, and $Palo Alto Networks (PANW.US)$ are set to report results on Tuesday, followed by $NVIDIA (NVDA.US)$, $Lucid Group (LCID.US)$, $eBay (EBAY.US)$, and $TJX Companies (TJX.US)$ on Wednesday. $Alibaba (BABA.US)$, $Block (SQ.US)$, $Booking Holdings (BKNG.US)$, $Intuit (INTU.US)$, $Moderna (MRNA.US)$, $Newmont (NEM.US)$, and $Warner Bros Discovery (WBD.US)$ headline a crowded Thursday.

S&P Global releases both its Manufacturing and Services Purchasing Managers' indexes for February on Tuesday. Consensus estimates are for a 47.2 reading for the Manufacturing PMI and 46.7 for the Services, each roughly in line with the January data.

On Wednesday, the Federal Open Market Committee will release minutes from its early February monetary-policy meeting.

The Bureau of Economic Analysis reports its second estimate of fourth-quarter gross-domestic-product growth on Thursday. Economists forecast that GDP increased at a seasonally adjusted annual rate of 2.9%.

The BEA wraps things up on Friday when it reports personal income and expenditures for January. Consensus expectations call for income and spending to each rise 1% month over month.

Monday 2/20

Equity and fixed-income markets are closed in observance of Presidents Day.

Tuesday 2/21

$Home Depot (HD.US)$, $Keysight Technologies (KEYS.US)$, $Medtronic (MDT.US)$, $Palo Alto Networks (PANW.US)$, $Public Service Enterprise Group (PEG.US)$, $Public Storage (PSA.US)$, $SBA Communications Corp (SBAC.US)$, and $Walmart (WMT.US)$ announce earnings.

S&P Global releases both its Manufacturing and Services Purchasing Managers' indexes for February. Consensus estimates are for a 47.2 reading for the Manufacturing PMI and 46.7 for the Services, each roughly in line with the January data. Both indexes have been below 50, indicating contraction in their respective sectors, since November.

Wednesday 2/22

$NVIDIA (NVDA.US)$ reports fourth-quarter fiscal-2023 results. Shares of the largest semiconductor company by market value have rocketed 46% higher this year, in part due to the frenzy over artificial-intelligence stocks unleashed by the release of AI-powered chatbot ChatGPT late last year.

$Coterra Energy (CTRA.US)$, $DaVita (DVA.US)$, $eBay (EBAY.US)$, $Lucid Group (LCID.US)$, $Pioneer Natural Resources (PXD.US)$, and $TJX Companies (TJX.US)$ release quarterly results.

The Federal Open Market Committee releases minutes from its early-February monetary-policy meeting. Economic data released since the meeting, including a blowout jobs report and hotter-than-expected consumer price index and producer price index, have challenged the disinflation narrative that Fed Chairman Jerome Powell put forth at his postmeeting press conference.

Thursday 2/23

$Alibaba (BABA.US)$, $American Electric Power (AEP.US)$, $American Tower Corp (AMT.US)$, $Block (SQ.US)$, $Booking Holdings (BKNG.US)$, $Intuit (INTU.US)$, $Moderna (MRNA.US)$, $Newmont (NEM.US)$, and $Warner Bros Discovery (WBD.US)$ hold conference calls to discuss earnings.

The Bureau of Economic Analysis reports its second estimate of fourth-quarter gross-domestic-product growth. Economists forecast that GDP increased at a seasonally adjusted annual rate of 2.9%.

Friday 2/24

The BEA reports personal income and expenditures for January. The consensus call is that both income and spending rose 1%, month over month. This compares with a gain of 0.2% and decrease of 0.2%, respectively, in December. The Federal Reserve's favored inflation gauge, the core personal-consumption expenditures price index, is expected to show an increase of 4.3%, year over year.

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