What to Expect in the Markets This Week

Next week, investors will get the latest look at the U.S. labor market when the job report is released, along with more data related to job openings, initial unemployment claims, and private sector payrolls. The Federal Reserve Bank of Atlanta will issue new GDP forecasts for the fourth quarter, and the Federal Reserve will reveal the minutes from the recent Open Market Committee meeting. Walgreens, Conagra Brands, Constellation Brands, and Unifirst will report their earnings.

Markets Closed on Monday for New Year’s Day

After the holiday, investors will kick off 2024 with a slew of economic data, while corporate earnings will resume.

U.S. GDP Forecasts

The week will start with the latest U.S. GDP forecasts from the Federal Reserve Bank of Atlanta, alongside other data related to construction spending and factory orders. Market watchers will scrutinize the minutes from the latest Federal Open Market Committee meeting, providing investors with an insider’s view of the Fed’s recent interest rate decision.

Job Report to Give Investors Insight into Labor Market Strength

While investors anticipate interest rate cuts from the Federal Reserve in 2024, they will be looking at the strength of the labor market, which has thus far helped keep the economy thriving despite a series of interest rate hikes aimed at curbing rising inflation.

The continuation of this momentum in 2024 will heavily depend on the performance of the labor market, which market watchers will receive a series of new employment data on this week. In particular, Friday’s job report will show whether companies are still able to add jobs to the economy. Before that, investors will receive data on job openings on Wednesday, as well as initial unemployment claims and private sector payrolls on Thursday. Already, last week’s initial unemployment claims indicated that job losses may be on the rise.

Minutes from the Federal Open Market Committee Meeting to Provide Insight on Timing of Rate Cuts

After the Federal Reserve kept interest rates unchanged at its last meeting, while also signaling that a rate hike may be on the horizon, investors will have the opportunity to review the minutes from that committee meeting when they are released on Wednesday. The minutes will provide an insider’s view of the discussions that took place behind the scenes during the Federal Open Market Committee meeting on December 12-13.

In a press conference following the interest rate decision, Federal Reserve Chairman Jerome Powell stated that committee members began discussing rate cuts for 2024, so the recent meeting minutes are likely to shed more light on those discussions and the potential timing for such cuts.

Walgreens to Release First Earnings Report under New CEO

Walgreens will report its earnings on Thursday, being one of the few companies to do so this week. Following a 30% drop in its stock price this year, Walgreens’ earnings report will be the first for new CEO Tim Wentworth, who took over in mid-October. In its last earnings report, Walgreens forecasted full-year earnings per share between $3.20 and $3.50, which is below analysts’ expectations.

Other Companies Reporting Earnings This Week

Other companies reporting earnings this week include snack maker Conagra Brands, egg producer Cal-Maine Foods, and beer importer Constellation Brands.

Source: https://www.investopedia.com/what-to-expect-in-the-markets-this-week-8420755