Last week the stock market rally paused after four solid weekly gains. The major Wall Street indexes finished with minimal weekly changes after climbing from weekly low on Tuesday, January 22nd. The major averages tested their 50-day moving averages but rallied late in the holiday-shortened week. The Dow Jones Industrial Average and Nasdaq Composite closed up 0.1% while the S&P 500 index dipped 0.2%. This stock market mini-pullback allowed many top stocks to form or extend handles, shaking out some weak holders and setting up lower buy points.
The last week of January will be very busy with macroeconomic data, which will provide more complete information on what conclusions can be drawn for the end of last year and the beginning of 2019.
Upcomming macroeconomic data
On Monday, January 28, New Zealand will release data on the country’s trade balance in December. The Central Bank of Japan will publish the minutes of its last meeting.
On Tuesday, January 29, the Australian Central Bank will release the business confidence index for December. In the US will be published the consumer confidence data for January.
On Wednesday, January 30, the markets will watch the retail sales in Japan, which are expected to report a 0.8% YoY decline in December against a 1.4 percent growth registered in the previous month. In Australia will be published an official report on inflation in Q4 2018, which is likely to remain at its current level of 0.4%. In France, preliminary GDP data in the fourth quarter of last year is expected to show a slowdown to 0.2% from 0.3% in the third quarter. In Germany, GfK will publish an assessment of consumer sentiment in the country, which will be followed by the preliminary data on inflation for January. In the Eurozone will be published the business sentiment data for January. Later, the glances will be headed to the US, where will be held the meeting of the Federal Reserve. Preliminary GDP data for Q4 2018 will also be released.
On Thursday, January 31, the investors will focus on activity data in China’s industrial sector for January. In Europe, the day continues with data on retail sales in Germany for December with expectations for a fall of 0.7%, with reported growth of 1.4% in the previous month. Current information on the labor market in the country will also be published. Preliminary data on the Eurozone GDP will be released around noon, as well as unemployment for December. In the United States will be published the weekly data on jobless claims.
On Friday, February 1, the markets will wait for the PMI for January in China, Russia, Italy, France, Germany, Eurozone, and the UK. For the Eurozone, there will also be preliminary inflation figures for January. The day will end with a series of macro data on the US labor market.
Upcomming corporate reports
The US reporting season is in full force this week.
On Monday, January 28, the construction machinery and equipment company Caterpillar will release its finance report. Interesting events during the week are also the statements of shipowner Scorpio Bulkers, Spanish bank Bankia SA, as well as several smaller banks in the US.
On Tuesday, January 29, the markets will carefully watch the financial statements and 2019 forecast of the pharmaceutical companies Allergan and Pfizer, the motorcycle manufacturer Harley-Davidson, the telecommunications giant Verizon Communications, technology giant Xerox, online retailer eBay and the German software developer SAP. However, the most important corporate event during the day will be the financial statement of Apple.
On Wednesday, January 30, will be published the earnings report of aircraft manufacturer Boeing Company, the Chinese e-commerce conglomerate Alibaba Group, the telecommunications giant AT&T the social media giant Facebook and the online payment processing company PayPal Holdings. During the day, the markets will carefully watch the financial statements of the Japanese technology company Canon, energy companies GasLog Partners and Hess Corporation, as well as fast food chain McDonald’s Corporation. The investors will also expect the financial report of the cruise line Royal Caribbean Cruises, carmaker Volvo AB, the machinery producer Wartsila and European low-cost airline Wizz Air Holdings. The day will end with corporate reports of electric cars manufacturer Tesla and the American multinational financial services corporation Visa.
On Thursday, January 31, will be another busy day for the markets with expected financial statements of General Electric, as well as its oil industry service subsidiary Baker Hughes. The day will continue with earnings reports of chemical corporation DowDuPont, the US financial services corporation Mastercard, oil giant Royal Dutch Shell, chemical tankers operator Stolt-Nielsen, European consumer goods company Unilever, the US logistics company United Parcel Service (UPS), the energy corporation ConocoPhillips and the sports carmaker Ferrari. The key corporate report during the day will be those of Amazon.com.
On Friday, February 1, will be posted financial statements of Deutsche Bank AG, Honeywell International, pharmaceutical company Merck & Co and Sony Corporation. The key event in corporate reporting during the day will be the American multinational oil and gas corporation Exxon Mobil Corporation.