Equities slid last week, with all three major indexes declining at least 1.2%. This despite a better-than-expected jobs report from the Bureau of Labor Statistics on Wednesday and a relatively benign inflation print on Friday.
The artificial-intelligence scare trade spread beyond the software sector into real estate, transportation, and wealth management, leading to some wild stock price swings. CBRE Group, a real estate services company, hit a 52-week high last Tuesday before plunging more than 20% over the next two days, as investors seemed to be rotating out of high-fee, labor-intensive industries that could be disrupted by AI.
This holiday-shortened trading week will bring a fair number of economic data releases, highlighted by the personal consumption expenditures price index from the Bureau of Economic Analysis on Friday. On Wednesday the Census Bureau will release the durable goods report and the Federal Open Market Committee will release the minutes of its last monetary-policy meeting.
Roughly 50 S&P 500 index companies are set to report earnings this week. Of the 369 that have reported so far, 77% have beaten earnings-per-share estimates, and 73% have surpassed revenue expectations.
Cadence Design Systems and Palo Alto Networks will report quarterly results on Tuesday followed by Analog Devices and Booking Holdings on Wednesday. Deere and Walmart will release their earnings on Thursday.
Monday 2/16
Equity and fixed-income markets are closed in observance of Presidents Day.
Tuesday 2/17
Amrize, Builders FirstSource, Cadence Design Systems, Devon Energy, DTE Energy, Energy Transfer, EQT, Expand Energy, FirstEnergy, Genuine Parts, Kenvue, Labcorp Holdings, Leidos Holdings, Medtronic, Palo Alto Networks, Republic Services, and Vulcan Materials release earnings.
Wednesday 2/18
American Water Works, Analog Devices, Booking Holdings, Carvana, CF Industries, Charles River Laboratories International, CRH, DoorDash, eBay, Edison International, Garmin, Global Payments, Host Hotels & Resorts, Insulet, Invitation Homes, Molson Coors Beverage, Moody's, Nordson, Occidental Petroleum, Omnicom Group, Texas Pacific Land, and Verisk Analytics report quarterly results.
The Census Bureau releases the durable goods report for December. Economists forecast a 1.7% decline in new orders for durable manufactured goods, after a 5.3% increase in November.
The Census Bureau reports new residential construction data for both November and December. Consensus estimate is for a seasonally adjusted annual rate of 1.33 million privately-owned housing starts. That would be about 6% more than in October.
The Federal Open Market Committee releases the minutes from its late January monetary-policy meeting. At that meeting, the FOMC left the federal-funds rate unchanged at 3.5% -- 3.75%, with two Fed governors dissenting in favor of a quarter percentage point cut.
Thursday 2/19
Akamai Technologies, CenterPoint Energy, Comfort Systems USA, Consolidated Edison, Copart, Deere, EPAM Systems, Evergy, Extra Space Storage, Live Nation Entertainment, Newmont, Pool Corp., Quanta Services, Southern Co., Targa Resources, and Walmart announce earnings.
The National Association of Realtors releases its Pending Home Sales Index for January. The PHS Index, a leading indicator of housing activity, is expected to increase 2.5% month over month, after plummeting 9.3% in December.
Friday 2/20
Lamar Advertising and PPL release quarterly results.
The Bureau of Economic Analysis releases the personal consumption expenditures price index for December. Consensus estimate is for a 2.8% year-over-year increase, even with the November data. The core PCE price index, which excludes food and energy prices, is expected to rise 2.9%, one-tenth of a percentage point more than previously.
The BEA reports its advance estimate of fourth-quarter gross-domestic-product growth. Economists forecast a seasonally adjusted annual growth rate of 2.8%, down from the third quarter's 4.4%.
S&P Global releases both its Manufacturing and Services Purchasing Managers' Indexes for February. The consensus calls are for a 52.3 reading for the Manufacturing PMI and a 53.0 for the Services PMI. This compares with readings of 52.4 and 52.7, respectively, in January.
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