We have finally closed the books on 2020, a year that we can safely say was unlike any other. As investors and traders return from the holiday weekend, the agenda for the week includes a host of events, reports and earnings releases that are likely to influence the market.
On Tuesday, the important Georgia Senate runoff elections take place, with the balance of power in that government chamber at stake and major implications for U.S. politics and the incoming Biden administration.
In addition we will start to get the final pieces of data that will shape the vector and velocity of the December quarter. We also have a handful of companies reporting their quarterly results, and their comments about the last few months and what they see ahead will likely set the tone for the December-quarter earnings season.
We have voiced our concerns over earnings expectations for the start of 2021 and suspect there will once again be some expectation re-setting being done during the upcoming fourth-quarter earnings season. With equity indicators at or near record highs, this means we may be in for a volatile period in the coming weeks as that expectation resetting occurs.
Here's a closer look at key economic data scheduled for this week:
Monday, January 4: December IHS Markit Manufacturing PMI; November Construction Spending.
Tuesday, January 5: December ISM Manufacturing Index.
Wednesday, January 6: Weekly MBA Mortgage Applications Index; December ADP Employment Change Report; December IHS Markit Services PMI; November Factory Orders; Weekly EIA Crude Oil Inventory Report.
Thursday, January 7: Weekly and Continuing Jobless Claims; December ISM Non-Manufacturing Index; Weekly EIA Natural Gas Inventory report.
Friday, January 8: December Nonfarm Payrolls; November Consumer Credit.
Here's a list of this week's earnings reports that we'll be focusing on:
Monday, January 4: Cal-Maine Foods (CALM) .
Wednesday, January 6: MSC Industrial (MSM) ; Simply Good Foods (SMPL) .
Thursday, January 7: Acuity Brands (AYI) ; Conagra Brands (CAG) ; Constellation Brands (STZ) ; Walgreens Boots Alliance (WBA) ; Micron Technology (MU) .
Let's begin the 252-trading day march in 2021.
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.
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
