Market Watch
Dow futures fell 55 points, S&P 500 futures down 3 points, and Nasdaq 100 futures rose 19 points.
Big-name earnings ahead
Many of the “Magnificent Seven” stocks that have driven markets higher are set to release high-profile and potentially market-moving results this week.
Microsoft will report after the bell on Tuesday, days after its market valuation topped $3 trillion. Alphabet (NASDAQ:GOOGL), like Microsoft, has benefited from AI excitement, will release its newest results after markets close.
Investors will watch Qualcomm (NASDAQ:QCOM)’s outlook for chipmaking on Wednesday. Boeing (NYSE:BA), the embattled planemaker whose 737 Max 9 model blew out mid-flight earlier this month, and Novo Nordisk (NYSE:NVO), the Danish drugmaker behind Wegovy, will also release quarterly results.
Apple, Amazon, and Facebook-owner Meta Platforms (NASDAQ:META) will be in the spotlight on Thursday.
Focus on Fed decision
The Federal Reserve’s latest two-day policy meeting will likewise be watched by markets.
Following Wednesday’s meeting, Fed officials are expected to hold interest rates at more than two-decade highs, focusing on near-term borrowing costs.
In December, the Fed hinted it could drop rates six times this year, sparking hopes for a March cut. While numerous policymakers have tempered these predictions, concerns remain that a quick easing in financial conditions might revive cooling inflationary pressures.
Last week’s stronger-than-expected advance estimate of fourth-quarter U.S. GDP supported the Fed’s decision to hold off on rate cuts. Economists predict January nonfarm payrolls on Friday to indicate continued labor market resiliency, but the Fed cannot integrate this data into its newest projections.
Bets on the first cut’s timing will depend on the Fed’s 2024 price increases and economic outlook. According to Investing.com’s Fed Rate Monitor Tool, the bank may release it in May about 50%.
China Evergrande ordered to liquidate
After failing to reach a restructuring arrangement with its creditors, a Hong Kong court ordered China Evergrande’s liquidation.
After a bond repayment and judicial proceedings, the $300 billion-liability company has been trying to close the purchase for almost two years.
Justice Linda Chan instructed Alvarez & Marsal to liquidate Evergrande on Monday to provide creditors some security. Chan remarked, “It is time for the court to say enough is enough,” in the morning court session, Reuters reported.
Evergrande CEO Siu Shawn told Chinese media that the move will not affect its onshore or offshore operations. Analysts warn that the liquidation procedure could be protracted and harmful to China’s property market’s already low confidence.
The statement lowered Evergrande shares by just under 21%.
Economic Calendar
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2023 Chinese growth exceeds objective, but difficulties persist
China’s economy grew slightly less than predicted in the fourth quarter due to sluggish spending and a property market slump, but it narrowly beat government expectations for 2023.Gross domestic product rose 5.2% year-over-year in the three months to Dec. 31, the National Bureau of Statistics reported Wednesday. The reading was weaker than 5.3% predictions but up from 4.9% the quarter before.This raised 2023 growth to 5.2%, above Beijing’s 5% target. Despite COVID-19 limits, activity increased from 3% in 2022 due to a lower base for comparison. Except for the three pandemic-era closures, it was the lowest yearly expansion rate since 1990.Last year, the Chinese economy was hampered by falling consumer spending, a housing market crash, and deflation. The world’s second-largest economy has demographic concerns, as shown by new data showing a faster population fall in 2023.
Last year, the Chinese economy was hampered by falling consumer spending, a housing market crash, and deflation. The world’s second-largest economy has demographic concerns, as shown by new data showing a faster population fall in 2023.
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