Investing Updates: What to Expect in the Week Ahead (PCE, and Earnings from Netflix, Intel)

Source:

https://www.moomoo.com/news/post/64196559/what-to-expect-in-the-week-ahead-pce-and-earnings?futusource=news_hotnews_list&client_hour_clock=24&main_broker=WwoJMTAwOApdCg==&my_cid=103096561&sg_cid=103096561&skintype=3&us_cid=103096561&level=2&global_content=%7B%22promote_content%22:%22mm:post:64196559%22,%22invite%22:103096561%7D&data_ticket=1768783511139881&utm_medium=futu_niuniu_share&utm_content=web_share&utm_campaign=news&utm_term=64196559

ChatGPT:

The week ahead shifts market focus sharply toward US policy developments and key economic data, alongside a busy earnings slate led by Netflix and Intel. With Producer Price Index data missing, Thursday’s Core PCE deflator becomes the most critical macro release, filling a data gap and serving as the Federal Reserve’s preferred inflation gauge. Markets are also closely watching corporate outlooks for reactions to President Trump’s proposed policies, including credit card interest rate caps and potential investment mandates in Venezuela.

US markets are closed on Monday for Martin Luther King Jr. Day. Earnings season effectively begins Tuesday, with Netflix in the spotlight. While Q4 results are expected to be solid, driven by popular content, investor attention is firmly on 2026 guidance. A roughly 13% revenue increase is anticipated, and any shortfall could revive concerns about long-term growth. Housing giant D.R. Horton is expected to report its sixth straight quarter of declining adjusted EPS, reflecting affordability pressures, while United Airlines is projected to see a third consecutive earnings decline due to rising labor costs.

Wednesday brings Johnson & Johnson’s results, with updates expected on medical technology momentum and the impact of government drug pricing agreements. Thursday is the busiest day: Intel may slightly outperform expectations despite an expected sales decline, but must show progress in regaining market share with new processors. GE Aerospace is likely to report slower EPS growth as margins remain pressured by low-profit engine deliveries.

On the macro front, updated Q3 GDP is expected to show strong 4.4% growth, jobless claims should remain modest, and Core PCE inflation is forecast at 2.9%, a key input for rate-cut expectations. Friday features SLB, with attention on its Venezuela exposure, alongside US Services and Manufacturing PMIs.

Market-wise, mega-cap tech weighed on major indices last week, while small caps rallied. Semiconductors stood out, led by strong gains in AMD and Intel, whereas Tesla lagged amid delivery concerns and EV competition.

Comments:

Another week of interesting earnings. 

What will Trump do this week? 😆