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World Week Ahead: US Earnings and Retail Sales in Spotlight

Strategic Insights

— 1 min read

Investors are eagerly awaiting the start of the fourth-quarter US corporate reporting season, which includes results from major companies such as Alcoa, JPMorgan Chase, and Wells Fargo. The mixed jobs data in December has clouded the outlook, with December's labour data showing a strengthening US economy with 252,000 jobs added, but also an unexpected drop in wages. The oil price rout, with Brent crude resuming its decline, is causing anxiety among investors, leading to tempered expectations for earnings. This week, key economic reports include US retail sales, the NFIB small business index, and the consumer price index, which will be closely watched for any clues about the timing of a potential rate hike.

Key Takeaways:

  • The start of the fourth-quarter US corporate reporting season is expected to bring significant market movements, with reports from Alcoa, JPMorgan Chase, Wells Fargo, Bank of America, Intel, and Goldman Sachs scheduled for release.
  • December's labour data showed a strengthening US economy, with 252,000 jobs added, but an unexpected drop in wages has raised concerns among investors.
  • The oil price rout has led to a decline in Brent crude, causing anxiety among investors, which could temper the need for higher interest rates.
  • The latest government labour data confirmed a strengthening US economy, with the jobless rate declining to 5.6 percent, the lowest level since June 2008.
  • Investors are closely watching economic reports this week, including US retail sales, the NFIB small business index, and the consumer price index, for any clues about the timing of a potential rate hike.

Statistics:

  • 252,000 jobs added in December, according to the latest government labour data.
  • Jobless rate declined to 5.6 percent, the lowest level since June 2008.
  • Brent crude declined recently, causing anxiety among investors.
  • US retail sales are scheduled to be released on Wednesday.
  • NFIB small business index is due to be released on Tuesday.
  • Consumer price index is due to be released on Friday.

Sources:

  • Bloomberg News
  • BusinessDesk
  • Reuters
  • JPMorgan Chase Bank
  • Price Futures Group
  • LPL Financial
  • Atlanta Fed
  • Federal Reserve
  • US Department of Labor

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