Week Ahead on Wall Street
By: James Flippin · January 27, 2023 · Reading Time: 3 minutes
Economic Data
Today, the Dallas Fed’s manufacturing index will be released. This monthly metric fell again in December, marking the 8th straight contraction.
Tomorrow, investors will get insight on employment costs, specifically wages and benefits for the fourth quarter of 2022. In Q3, wages increased 1.3% while benefits increased by 1%.
Wednesday will be one of the biggest days of the month for Wall Street, with the release of the Federal Reserve’s Interest Rate Decision. The fed funds rate currently sits at 4.25%-4.5%, the highest level since 2007. At the previous Fed meeting, officials signaled their intention to lift the rate above 5% in 2023 and then maintain that level. In addition to the Fed meeting, JOLTs job openings and the ISM manufacturing PMI are also scheduled to drop.
On Thursday, the weekly reports for initial and continuing jobless claims will be released. Last week, the number of new Americans filing for unemployment hit 186,000, the lowest since April.
Finally, on Friday, investors will get a more cohesive look at the job market with the release of the unemployment rate. In December, the unemployment rate fell below expectations to 3.5%.
Earnings
GE HealthCare (GEHC) kicks off the week with an earnings release today. GE (GE) recently completed the spin-off of GE HealthCare after market close on January 3, 2023. Many analysts are interested to hear what’s in store for the newly minted medical technology company.
Tomorrow, Electronic Arts (EA), Exxon Mobil (XOM), and Snapchat-parent Snap Inc (SNAP) will report. Additionally, Pfizer (PFE) will keep us updated on all things COVID, including a potential link between its updated booster and increased stroke risk in older adults, currently being investigated by the CDC.
On Wednesday, Meta Platforms (META) will fill investors in on its portfolio of social media apps including Facebook and Instagram, as well as the construction of the metaverse. Daily active users, a key metric for Meta, was up 3% to 1.98 billion in Q3, after slipping earlier in the year. Investors will want to see if this progress continues.
Thursday marks one of the most-watched days of this quarter, as three of the five so-called FAANG companies report: Amazon (AMZN), Apple (AAPL), and Google-owner Alphabet (GOOGL). These three tech giants wield an outsized influence on US markets. In particular, investors will anticipate Alphabet’s response to two recently-announced antitrust suits filed by the US DOJ.
Cigna (CI) will round out the week on Friday. Last quarter, the global health services company posted revenue of $45.3 billion and raised its full-year outlook for 2022.
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