Week Ahead on Wall Street: Growth and Sentiment

Estimated reading time: 4 minutes

Sticking the Landing

Inflation has been perhaps the hottest topic for the market for quite some time now. But there are other economic data points that are important to keep an eye on, and this week is no exception.

Key data set to be released this week will revolve around growth dynamics (including retail sales, housing starts, and industrial production), and consumer and homebuilder sentiment.

Investors are going to keep an ear out for comments from Fed officials, of which there’ll be no shortage to choose from between speeches from Fed Governor Christopher Waller, and Atlanta Fed President Raphael Bostic, and the release of the Fed’s Beige Book Wednesday.

Earnings seasons tend to be front-loaded with financial services companies, and that continues this week after several big banks reported what appeared to be relatively mixed earnings on Friday. Investors will look for more color on the earnings environment, both for the quarter behind us and the quarters to come. As they always do.

Economic Data and Earnings Reports

Monday

• Markets are closed on Martin Luther King Jr. Day.

Tuesday

• Fedspeak: Governor Waller on the economic outlook and interest rates.
• Earnings: Goldman Sachs (GS), Morgan Stanley (MS), and PNC (PNC).

Wednesday

• December Retail Sales: They are a key indicator of consumer demand.
• December Industrial Production and Capacity Utilization: The industrial sector accounts for much of the cyclical swings in economic activity.
• January NAHB Housing Market Index: This index tracks how homebuilders feel about the current and future state of the single-family housing market.
• Fed Beige Book: This report is released eight times per year and tracks the state of the economy based on qualitative information.
• Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.
• Fedspeak: Governor and Vice Chair of Supervision Michael Barr at the Conference on Cyber Risk. Governor Michelle Bowman on bank capital reform. New York Fed President John Williams on measuring equitable growth.
• Earnings: Citizens (CFG), Discover (DFS), Kinder Morgan (KMI), Prologis (PLD), Charles Schwab (SCHW), and US Bancorp (USB).

Thursday

• December Building Permits and Housing Starts: Construction data is a leading indicator of business activity.
• Fedspeak: Atlanta Fed President Bostic on the economic outlook.
• Weekly Jobless Claims: This high frequency labor market data gives insight into filing for unemployment benefits applications. Jobless claims have continued to show a labor market that remains strong despite having cooled.
• Earnings: Fastenal (FAST), JB Hunt (JBHT), KeyCorp (KEY), M&T Bank (MTB), Northern Trust (NTRS), PPG Industries (PPG), and Truist (TFC).

Friday

• January University of Michigan Consumer Sentiment: How consumers feel about economic conditions may affect their spending habits. This survey places a particular focus on inflation and its trajectory.
• December Existing Home Sales: A majority of home transactions in any given month tend to come from the existing market, and as a result set the tone for the broader housing market.
• Fedspeak: Governor and Vice Chair of Supervision Michael Barr on bank regulation. San Francisco Fed President Mary Daly speaks at the San Diego County Economic Roundtable.
• Earnings: Comerica (CMA), Fifth Third Bancorp (FITB), Huntington Bancshares (HBAN), Regions Financial (RF), Schlumberger (SLB), State Street (STT), and Travelers (TRV).

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