It's a shortened trading week, but that doesn't mean there's any less going on over the next four days. Between impeachment, the World Economic Forum, economic data and earnings season investors will have their hands full.
We continue to see the current earnings season, which will heat up considerably over the next few weeks, and the aggregated guidance for the current quarter as one of the key determinants of the stock market's next move.
When we return from the long weekend on Tuesday, the annual World Economic Forum in Davos, Switzerland will take place, where 2020 economic outlooks and the potential implications for monetary policy in the coming year will be shared and likely impact the stock market.
Meanwhile, the economic data calendar will likely focus on corporate earnings, the start of the presidential impeachment process and any fallout from the inked phase-one trade deal between the U.S. and China.
Not Just Davos
While the economic data will be light until Friday's Flash PMI data for January, here's a closer look at what's on the economic docket:
Wednesday, Jan. 22: Weekly MBA Mortgage Applications Index; FHFA Housing Price Index for January.
Thursday, Jan 23: Weekly reports for Jobless Claims; EIA Natural Gas Inventories; EIA Crude Oil Inventories.
Friday, Jan 24: January Flash readings for the Jibun Bank Flash Japan Composite PMI; IHS Markit Eurozone Composite PMI; IHS Markit US Composite PMI.
Following last week's data, which included December data for Retail Sales, Housing Starts and Industrial Production, the Atlanta Fed updated its GDPNow forecast to 1.8% from 2.3% on Jan. 10. Meanwhile the New York Fed's NowCast revised its outlook for December quarter GDP to 1.2% from 1.1%.
Earnings Season Heats Up
Corporate earnings reports will pick up this week and expand past the focus on financial companies. All told almost 200 companies are slated to report quarterly results, up from 59 last week, and 43 are S&P 500 constituents.
Here's the list of reports that we'll be focusing on:
Thursday, Jan 23: Comcast (CMCSA) , GATX Corp. (GATX) , JetBlue Airways (JBLU) , Kimberly-Clark (KMB) , Procter & Gamble (PG) , Southwest Airlines (LUV) , STMicroelectronics (STM) , Union Pacific (UNP) , VF Corp. (VFC) , Intel (INTC) , Skyworks Solutions (SWKS) .
This commentary is an excerpt from the Trifecta Stocks Roundup a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
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-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.