Stocks finished the week near record highs, as investors brace for one of the busiest weeks of the quarter. Earnings from five of the leading tech companies, known as the “Magnificent Seven,” will take the spotlight. Additionally, 106 S&P 500 companies, including six Dow components, are set to report in the upcoming week. On Wednesday, the Fed is expected to announce its latest policy decision, with investors closely monitoring Fed Chair Jerome Powell’s conference for any indication of when interest rates may be lowered. The January jobs report on Friday is anticipated to show a slight decrease in job additions with a projected steady unemployment rate of 3.7%. Key updates on economic sectors and the latest job openings data are also scheduled.
Aside from big tech, earnings from AMD, Starbucks, Pfizer, Chevron, Exxon Mobil, and Boeing will be in focus. Stocks are entering the final week of the month near all-time highs, with the S&P 500 and Nasdaq Composite rising over 2% so far in January.
Investors have adjusted their expectations since Powell’s previous appearance in December. While many Wall Street economists anticipate a future rate cut, the timing remains uncertain. The market has priced in a 47% chance of a rate cut in March, while May is expected to see rates cut by 88%. However, the Fed is expected to take a more neutral stance in their post-meeting statement.
Following the Fed meeting, the January jobs report is set for release. Economists expect the data to show a modest increase in nonfarm payroll jobs and a slight uptick in the unemployment rate. Despite recent layoff headlines, a widespread labor market slowdown is not expected to be reflected in the report. Wells Fargo economists anticipate ongoing labor market normalization, with payroll growth holding up well, but signs of moderation are emerging.
In addition to economic data, corporate earnings will also be in focus to gauge how companies are faring in the current higher interest rate environment. Excluding Tesla, the top six earnings drivers for the S&P 500 are expected to be the other “Magnificent Seven” tech stocks, contributing to substantial year-over-year earnings growth. The stock price reaction to these earnings reports will be crucial for the overall market direction.
The upcoming week’s economic calendar includes various data releases and earnings reports:
– Monday: Dallas Fed manufacturing activity; earnings from Cleveland Cliffs, Phillips, SoFi Technologies, Whirlpool
– Tuesday: S&P CoreLogic 20-city year-over-year NSA, Conference Board consumer confidence, JOLTS job openings, Dallas Fed services activity; earnings from Advanced Micro Devices, Alphabet, Electronic Arts, General Motors, JetBlue, Juniper Networks, Match Group, Marathon Petroleum Corporation, Microsoft, Pfizer, Starbucks, UPS
– Wednesday: MBA Mortgage Applications, ADP private payrolls, Employment cost index, Federal Reserve monetary policy decision; earnings from Aflac, Boeing, Hess, Mastercard, MetLife, Novo Nordisk, Phillips 66, Qualcomm
– Thursday: Challenger jobs cuts, Unit labor costs, Nonfarm productivity, Initial jobless claims, S&P Global US manufacturing PMI, Construction spending, ISM manufacturing, ISM prices paid; earnings from Apple, Amazon, Deckers Brand, Honeywell, Meta, Merck, Royal Caribbean Group, Peloton, SiriusXM, Skechers, Tractor Supply, The Clorox Company, United States Steel
– Friday: Nonfarm payrolls, Unemployment rate, Average hourly earnings, Average weekly hours worked, Labor force participation rate, U. of Mich sentiment, Factory orders, Durable goods orders; earnings from Chevron, Exxon Mobil, Charter Communications
Josh Schafer is a reporter for Yahoo Finance. Follow him on [X @_joshschafer](https://twitter.com/_joshschafer). For the latest stock market news and in-depth analysis, including events that move stocks, [click here](https://finance.yahoo.com/). Read the latest financial and business news from [Yahoo Finance](https://finance.yahoo.com/).
