Harvard economist Jason Furman shares his economic outlook for 2023, focusing on recession fears, the Federal Reserve’s agenda and geopolitical factors.
This week will be a busy one for investors with earnings from defense, credit cards and airline companies all reporting quarterly results.
The stock market is coming off a mixed week with the Dow Jones Industrial Average falling over 2%, while the S&P slipped marginally as the Nasdaq Composite rose by nearly the same despite a strong Friday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 33375.49 | +330.93 | +1.00% |
| SP500 | S&P 500 | 3972.61 | +73.76 | +1.89% |
| I:COMP | NASDAQ COMPOSITE INDEX | 11140.434416 | +288.17 | +2.66% |
FOX Business breaks down this week’s top market events.
HEDGE FUND INDUSTRY LOST $125B WORTH OF ASSETS IN 2022
Monday, January 23
IRS tax season begins to accept and process individual 2022 tax returns. This comes as the IRS adjusted tax brackets upwards, to account for inflation, for the 2023 tax year.
(Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images / Getty Images)
Elsewhere, Activision Blizzard creator of games such as World of Warcraft, Overwatch, and Daiblo will stop working in China on Monday. This comes as Blizzard refused to renew a 14-year contract it had with NetEase, a Chinese firm, to host the game in China. Blizzard is looking for a new partner in China.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ATVI | ACTIVISION BLIZZARD INC. | 73.84 | +0.08 | +0.11% |
| GM | GENERAL MOTORS CO. | 35.35 | -0.37 | -1.04% |
In auto news, GM will begin to notify car owners of a recall centered on daytime running lights not turning off which can cause dangerous glare.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 35.35 | -0.37 | -1.04% |
In earnings news, before market open, Baker Hughes and Synchrony Financial will take center stage.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BKR | BAKER HUGHES CO. | 31.07 | +0.58 | +1.90% |
| SYF | SYNCHRONY FINANCIAL | 35.39 | +2.81 | +8.61% |
After the bell investors will listen in to Brown & Brown and Zions Bank.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BRO | BROWN & BROWN INC. | 61.71 | +1.45 | +2.41% |
| ZION | ZIONS BANCORPORATION NA | 51.48 | +1.96 | +3.96% |
In economic news, the Conference Board’s index of leading economic indicators is due and expected to decline 0.7%.
Tuesday, January 24
On Tuesday Apple launches its new MacBook Pro computers with upgraded internal chips.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 137.87 | +2.60 | +1.92% |
Oscar nominations will be announced on Monday in a year that saw the much-awaited sequels to both Avatar and Tom Cruise’s Top Gun.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 103.48 | +4.40 | +4.44% |
| WBD | WARNER BROS. DISCOVERY INC. | 13.02 | +0.55 | +4.41% |
| CMCSA | COMCAST CORP. | 39.37 | +1.23 | +3.22% |
Also on Monday the Senate holds hearing on the ticketing industry after the Taylor Swift Eras tour fiasco and the subsequent lawsuit by her fans. Lawmakers will be looking into whether Ticketmaster has been acting as a monopoly and whether it should be targeted under antitrust regulations.
Taylor Swift struggled with Ticketmaster after fans couldn’t buy tickets to her “The Eras Tour.” (Bryan Bedder / Getty Images)
A barrage of earnings on Tuesday include 3M, General Electric, Johnson & Johnson, PACCAR, Lockheed Martin, Raytheon Technologies, Travelers, Union Pacific, and Verizon.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MMM | 3M CO. | 120.64 | +2.22 | +1.87% |
| GE | GENERAL ELECTRIC CO. | 77.68 | +0.82 | +1.07% |
| JNJ | JOHNSON & JOHNSON | 168.68 | -0.84 | -0.50% |
| PCAR | PACCAR INC. | 99.19 | +1.18 | +1.20% |
| LMT | LOCKHEED MARTIN CORP. | 443.18 | +3.87 | +0.88% |
| RTX | RAYTHEON TECHNOLOGIES CORP. | 94.34 | +0.12 | +0.13% |
| TRV | THE TRAVELERS COS. INC. | 185.29 | +1.26 | +0.68% |
| UNP | UNION PACIFIC CORP. | 208.63 | +3.13 | +1.52% |
| VZ | VERIZON COMMUNICATIONS INC. | 40.00 | -0.06 | -0.15% |
After the bell investors will hear from Capital One Financial, Microsoft, and Texas Instruments.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COF | CAPITAL ONE FINANCIAL CORP. | 104.18 | +6.27 | +6.40% |
| MSFT | MICROSOFT CORP. | 240.22 | +8.29 | +3.57% |
| TXN | TEXAS INSTRUMENTS INCORPORATED | 173.00 | +2.07 | +1.21% |
Economic data published on Tuesday will include the S&P Global manufacturing PMI and services, as well as Richmond Fed services index.
Wednesday, January 25
Microsoft’s Developer Direct games presentation will include announcements about Redfall, Forza Motorsport, Minecraft Legends, and The Elder Scrolls Online.
Meanwhile, in the United Kingdom, Amazon workers will go on strike at a warehouse as waves of strikes plague the UK.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 240.22 | +8.29 | +3.57% |
| AMZN | AMAZON.COM INC. | 97.25 | +3.57 | +3.81% |
Before market open investors will tune into earnings calls for AT&T, Boeing, General Dynamics, NextEra Energy, US Bancorp, Textron, Hess, Nasdaq, and Norfolk Southern.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| T | AT&T INC. | 19.23 | +0.29 | +1.53% |
| BA | THE BOEING CO. | 206.76 | -0.33 | -0.16% |
| GD | GENERAL DYNAMICS CORP. | 232.68 | +1.19 | +0.51% |
| NEE | NEXTERA ENERGY INC. | 81.81 | -0.78 | -0.94% |
| USB | U.S. BANCORP | 46.46 | +0.83 | +1.82% |
| TXT | TEXTRON INC. | 67.85 | +1.45 | +2.18% |
| HES | HESS CORP. | 154.82 | +1.02 | +0.66% |
| NDAQ | NASDAQ INC. | 62.06 | +1.06 | +1.74% |
| NSC | NORFOLK SOUTHERN CORP. | 253.67 | +3.80 | +1.52% |
After the bell investors will eagerly follow the earnings of Tesla, which recently slashed prices as well as IBM, Crown Castle, Lam Research, Flex, CSX, and Levi Strauss.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 133.42 | +6.25 | +4.91% |
| IBM | INTERNATIONAL BUSINESS MACHINES CORP. | 141.19 | +0.60 | +0.43% |
| CCI | CROWN CASTLE INC. | 148.12 | +2.88 | +1.98% |
| LRCX | LAM RESEARCH CORP. | 472.50 | +18.61 | +4.10% |
| FLEX | FLEX LTD. | 24.24 | +0.62 | +2.62% |
| CSX | CSX CORP. | 32.01 | +0.46 | +1.46% |
| LEVI | LEVI STRAUSS & CO. | 16.35 | +0.43 | +2.70% |
Wednesday’s economic data will include Mortgage applications and EIA weekly crude stocks.
MORTGAGE RATES FALL TO LOWEST LEVEL SINCE SEPTEMBER
Thursday, January 26
The FDA will meet on Thursday to discuss the future of COVID shots and boosters.
Audi unveils Activesphere concept car as part of its collection of concept cars which include the Grandsphere, Skysphere, and Urbansphere which are all built on a Volkswagen group’s PPE electric vehicle platform.
Earnings to begin the day will include Comcast, Dow, MasterCard, Northrup Grumman, Sherwin-Williams, Tractor Supply Co, Valero Energy, Alaska Airlines, American Airlines, Jetblue, and Southwest.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CMCSA | COMCAST CORP. | 39.37 | +1.23 | +3.22% |
| DOW | DOW INC. | 57.44 | +0.84 | +1.48% |
| MA | MASTERCARD INC. | 376.04 | +8.15 | +2.22% |
| NOC | NORTHROP GRUMMAN CORP. | 450.95 | +8.64 | +1.95% |
| SHW | THE SHERWIN-WILLIAMS CO. | 245.50 | +11.20 | +4.78% |
| TSCO | TRACTOR SUPPLY CO. | 212.07 | +5.21 | +2.52% |
| VLO | VALERO ENERGY CORP. | 142.71 | +4.21 | +3.04% |
| ALK | ALASKA AIR GROUP INC. | 49.80 | +0.39 | +0.79% |
| AAL | AMERICAN AIRLINES GROUP INC. | 16.34 | +0.06 | +0.37% |
| JBLU | JETBLUE AIRWAYS CORP. | 8.58 | +0.08 | +0.94% |
| LUV | SOUTHWEST AIRLINES CO. | 37.04 | +0.59 | +1.61% |
After the bell investors will hear from Visa, Intel, KLA, and L3Harris Technologies.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| V | VISA INC. | 224.28 | +3.87 | +1.75% |
| INTC | INTEL CORP. | 29.22 | +0.80 | +2.81% |
| KLAC | KLA CORP. | 413.85 | +11.75 | +2.92% |
| LHX | L3HARRIS TECHNOLOGIES INC. | 192.51 | +1.06 | +0.55% |
On the economic calendar, the first read on fourth-quarter GDP will be released and is expected to show growth of 2.8%, according to forecasts.
Other data to watch include building permits, durable goods, and initial jobless claims.
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Friday, January 27
Disneyland resorts will celebrate the 100th birthday of Walt Disney.
This comes as Disney has been caught in a fight for control of its board as activist investor Nelson Peltz fights for a seat.
Earnings before market open on Friday will finish off the week with American Express, Chevron, Charter Communications, Colgate-Palmolive, and Booz Allen Hamilton.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AXP | AMERICAN EXPRESS CO. | 151.60 | +4.73 | +3.22% |
| CVX | CHEVRON CORP. | 180.82 | +1.87 | +1.04% |
| CHTR | CHARTER COMMUNICATIONS INC. | 396.11 | +11.91 | +3.10% |
| COLGATE | n.a. | n.a. | n.a. | n.a. |
| BAH | BOOZ ALLEN HAMILTON | 93.72 | +1.25 | +1.36% |
Economic data to close the week will include personal income, personal consumption, University of Michigan consumer sentiment index and pending home sales.