Inflation will be the big macroeconomic focus in the coming week, with minimal earnings until the big banks and a few others on Friday. Consumer Price Index data for December is due on Thursday, followed by the Producer Price Index on Friday.
Financial markets rushed to price in earlier US rate cuts after the December dovish pivot by the Federal Reserve, but this week expectations have been pushed back a bit.
Monday, January 8
The week starts on a quiet note, with Jefferies Financial Group the sole major earnings headliner.
Others due to report:
Economic announcements: Consumer Credit
Tuesday, January 9
WD-40 is due to report earnings, and investors are hoping the results will grease their portfolios.
Others due to report:
Earnings: AZZ Incorporated (NYSE:AZZ), Aehr Test Systems, SMART Global Holdings
Economic announcements: Trade Deficit
Wednesday, January 10
The earnings trickle continues with KB Home (NYSE:KBH), which is expected by analysts to report earnings of $1.67 per share on revenue of $1.62 billion, according to Earnings Whispers.
Others due to report:
Earnings: Richardson Electronics
Economic announcements: Wholesale Inventories, Crude Oil Inventories
Thursday, January 11
All eyes will be on December CPI data. In November, CPI stood 3.1% higher than a year earlier, which, as it was the joint-lowest reading since spring 2021, matched the market narrative that 2024 will see further cooling in inflation and a soft economic landing to enable the Fed to begin cutting interest rates.
Core CPI is set to break below 4% year-on-year for the first time since May 2021, and this is expected to give the Fed added confidence that inflation is on the path to reaching its 2% target by the middle of the year.
Others due to report:
Earnings: Concrete Plumbing Holdings
Economic announcements: Initial Jobless Claims, Housing Starts, Building Permits
Friday, January 12
After CPI comes PPI, which in November rose just 0.9% year-on-year as prices for final demand goods fell 1.5%. Following this week's results, investors will look ahead to the Federal Open Market Committee's January 31 meeting.
Investors will also be watching for a batch of bank earnings results, including Bank of America, Citigroup, JP Morgan Chase & Co and Wells Fargo.
Others due to report:
Earnings: Delta Air Lines (NYSE:DAL), UnitedHealth Group Inc (NYSE:UNH)
Economic announcements: University of Michigan Confidence (Preliminary)