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Pre-market futures are picking up where we left off Friday afternoon: up. A “Goldilocks” jobs number from the U.S. government (BLS) Friday helped attitudes improve for the coming trading year, rising over +2% across indices and turning the first trading week of 2023 positive. At this hour, the Dow is +105 points, the the S&P 500 is +15 and the Nasdaq +60 points.
There will be plenty of things that could potentially change this dynamic; what this week lacks in overall volume of news events it will make up in impact: the biggest Wall Street banking firms come out on Friday this week, and a key inflation metric is out Thursday. China news is good again this morning, helping buoy pre-market trading, but good Chinese data is pretty much a day-to-day judgment.
Compared to last week, this one is pretty light on economic data. The biggest report out in the next five days is the latest Consumer Price Index (CPI) for December. Year-over-year expectations are for +6.6% growth, down a half-point from the +7.1% reported for November. The core read — stripping out volatile food and energy costs — is expected to come down to +5.7% from +6.0% last time around.
The CPI, aka the “Inflation Rate,” has come down for five straight months, having peaked in June of last year at +9.1%. The core print has had a bit more ebb and flow over the second half of 2022, hitting a high of +6.5% in March but then coming back to a yearly high +6.6% in September. Since then, we’re back on a steady decline, and looking for the lowest monthly core read year over year since December 2021.
Otherwise, Q4 earnings season begins in earnest this week, most notably with the big banks — JPMorgan Chase (JPM - Free Report) , Citigroup (C - Free Report) , Bank of America (BAC - Free Report) and Wells Fargo (WFC - Free Report) — but also KB Home (KBH - Free Report) Wednesday and Taiwan Semiconductor (TSM - Free Report) Thursday. This is before mentioning Bed, Bath & Beyond , which limps into fiscal Q3 earnings under threat of bankruptcy.
Any of these things may upend our bullish apple cart from this morning’s pre-market and Friday’s healthy market gains. There is still a decent amount of pending disappointment baked into our current market climate, but it would seem market participants from the end of the first trading week of the year into the second are getting lead-off toward good — or, perhaps “less bad” — news in the big reports on the way.
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Q4 2022 Earnings Season in Focus
Pre-market futures are picking up where we left off Friday afternoon: up. A “Goldilocks” jobs number from the U.S. government (BLS) Friday helped attitudes improve for the coming trading year, rising over +2% across indices and turning the first trading week of 2023 positive. At this hour, the Dow is +105 points, the the S&P 500 is +15 and the Nasdaq +60 points.
There will be plenty of things that could potentially change this dynamic; what this week lacks in overall volume of news events it will make up in impact: the biggest Wall Street banking firms come out on Friday this week, and a key inflation metric is out Thursday. China news is good again this morning, helping buoy pre-market trading, but good Chinese data is pretty much a day-to-day judgment.
Compared to last week, this one is pretty light on economic data. The biggest report out in the next five days is the latest Consumer Price Index (CPI) for December. Year-over-year expectations are for +6.6% growth, down a half-point from the +7.1% reported for November. The core read — stripping out volatile food and energy costs — is expected to come down to +5.7% from +6.0% last time around.
The CPI, aka the “Inflation Rate,” has come down for five straight months, having peaked in June of last year at +9.1%. The core print has had a bit more ebb and flow over the second half of 2022, hitting a high of +6.5% in March but then coming back to a yearly high +6.6% in September. Since then, we’re back on a steady decline, and looking for the lowest monthly core read year over year since December 2021.
Otherwise, Q4 earnings season begins in earnest this week, most notably with the big banks — JPMorgan Chase (JPM - Free Report) , Citigroup (C - Free Report) , Bank of America (BAC - Free Report) and Wells Fargo (WFC - Free Report) — but also KB Home (KBH - Free Report) Wednesday and Taiwan Semiconductor (TSM - Free Report) Thursday. This is before mentioning Bed, Bath & Beyond , which limps into fiscal Q3 earnings under threat of bankruptcy.
Any of these things may upend our bullish apple cart from this morning’s pre-market and Friday’s healthy market gains. There is still a decent amount of pending disappointment baked into our current market climate, but it would seem market participants from the end of the first trading week of the year into the second are getting lead-off toward good — or, perhaps “less bad” — news in the big reports on the way.