US Elections, General

Week Ahead: earnings flood in from Apple, Tesla, and more

George Walker, Friday, 22 January 2021

MKT-7092_WA_Earnings_blog


Last week saw equities hit record highs as Joe Biden was sworn in as President of the US. Markets got a boost from expectations that further stimulus could outweigh the negative ongoing impact of the pandemic, and speculation of major additional stimulus also saw the USD decline against major currencies.

Easing into the new week

Monday, we expect the Bank of Japan‘s Monetary Policy meeting minutes in the evening; other than this, traders will be looking to see the impact of Biden’s sweeping policy changes. The President appears to be fast-tracking the reversal of policies set out by the previous administration and financial markets could react to any changes signed off over the weekend.

Unemployment data is released from the UK on Tuesday morning which could see some movement for the cable. It is, however, another quiet day, with only the API Weekly Crude Oil Stock inventory data during the evening.

Macro data ramps up midweek as Wednesday sees Consumer Price Index inflation data from Australia overnight, and Durable Goods Orders from the US an hour before market open.

Markets could gain some macro momentum

The week’s headline macro event will be the Interest Rate Decision from the Federal Reserve on Wednesday evening. Analysts forecast no change the current interest rate which sits at 0.25%. Traders will be focusing on the Press Conference shortly thereafter as the Fed address questions from the financial press. The potential for further easing of monetary policy has now begun to shift to if and when; tightening of stimulus and policies will begin as the world’s largest economy begins to show signs of recovery from the pandemic. Both US indices and the USD could react to any unforeseen announcements.

Preliminary CPI data from Germany hits the wires on Thursday afternoon, as well as Initial and Continuing Jobless Claims and Preliminary GDP from the US. Employment and CPI data from Japan could see movement in JPY late into the evening. 
Finally, German Unemployment and preliminary GDP data gets the final trading day of the month underway, followed only by GDP from Canada in the early afternoon rounding off our week.


American giants’ quarterly results come in

There’s a huge week ahead on the earnings front as major US companies such as Microsoft, Apple, Tesla, Facebook, and McDonald’s are among the hundreds of companies expected to announce quarterly results.

Netflix was last week’s big winner as shares rallied on results showed how the stay-at-home order boosted tech. Next up, all eyes will be on its FAANG counterparts, starting with Apple and Facebook.

Upon the release of earnings, share prices could move aggressively, and are typically published outside of market hours, so remember to keep an eye on pre-market movements and any gaps ahead of each trading session.

All times indicated are GMT.
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ECONOMIC CALENDAR (all times are GMT)

Monday, 25th January
09:00 GER IFO – Business Climate
09:00 GER IFO – Current Assessment
09:00 GER IFO – Expectations
13:30 USD Chicago Fed National Activity Index
15:30 USD Dallas Fed Manufacturing Business Index
23:50 JPY BoJ Monetary Policy Meeting Minutes
23:50 JPY Corporate Services Price Index

UK Company Announcements:
Crest Nicholson

US Company Announcements: 
Kimberly-Clark Corporation

Tuesday, 26th January
07:00 GBP ILO Unemployment Rate
07:00 GBP Average Earnings Including Bonus
07:00 GBP Average Earnings Excluding Bonus
07:00 GBP Claimant Count Rate
07:00 GBP Claimant Count Change
13:55 USD Redbook Index
14:00 USD Housing Price Index
14:00 USD S&P/Case-Shiller Home Price Indices
15:00 USD Consumer Confidence
21:30 USD API Weekly Crude Oil Stock
23:30 AUD Westpac Leading Index

UK Company Announcements:
PZ Cussons
Saga

US Company Announcements:
Microsoft 
Johnson & Johnson
Verizon Communications
Novartis
NextEra Energy
Texas Instruments
Starbucks
Advanced Micro Devices
Raytheon Technologies
American Express
General Electric
3M Company
Lockheed Martin
Prologis
UBS AG
Capital One Financial
eBay Inc

Wednesday, 27th January
00:30 AUD Consumer Price Index
00:30 AUD RBA Trimmed Mean CPI
00:30 AUD National Australia’s Bank Business Confidence
00:30 AUD National Australia’s Bank Business Conditions
05:00 JPY Coincident Index
05:00 JPY Leading Economic Index
07:00 GER Gfk Consumer Confidence Survey
09:00 CHF ZEW Survey – Expectations
13:30 USD Durable Goods Orders
13:30 USD durable Goods Orders ex Defence
13:30 USD Durable Goods Orders ex Transportation
13:30 USD Durable Goods Orders ex Aircraft
15:30 USD EIA Crude Oil Stocks Change
19:00 USD Fed Interest Rate Decision
19:00 USD Fed’s Monetary Policy Statement
19:00 FOMC Press Conference
21:45 NZD Imports
21:45 NZD Exports
21:45 NZD Trade Balance NZD
23:50 JPY Retail Trade
23:50 JPY Large Retailer Sales

UK Company Announcements:
3i Group
Tullow Oil

US Company Announcements:
Apple
Tesla
Facebook
AT&T
Boeing Company
ServiceNow
Stryker

Thursday, 28th January
00:30 AUD Import Price Index
00:30 AUD Export Price Index
10:00 EUR Services Sentiment
10:00 EUR Consumer Confidence
10:00 EUR Industrial Confidence
10:00 EUR Business Climate
10:00 EUR Economic Sentiment Indicator
13:30 GER Consumer Price Index Preliminary
13:30 GER Harmonised Index of Consumer Prices Preliminary
13:30 USD Initial Jobless Claims
13:30 USD Continuing Jobless Claims
13:30 USD Gross Domestic Product Price Index Preliminary 
13:30 USD Gross Domestic Product Annualised Preliminary
13:30 USD Personal Consumption Expenditures Prices Preliminary
13:30 USD Core Personal Consumption Expenditures Preliminary
15:00 USD New Home Sales
15:00 USD New Home Sales Change
15:30 USD EIA Natural Gas Storage Change
21:00 NZD ANZ – Roy Morgan Consumer Confidence
23:30 JPY Tokyo Consumer Price Index
23:30 JPY Tokyo CPI ex Fresh Food
23:30 JPY Tokyo CPI ex Food & Energy
23:30 JPY Jobs / Applicants Ratio
23:30 JPY Unemployment Rate
23:50 JPY Industrial Production Preliminary

UK Company Announcements:
Wizz Air
Anglo American

US Company Announcements:
Visa
Mastercard
Comcast
Danaher
McDonald’s

Friday, 29th January
00:30 AUD Producer Price Index
07:00 GER Import Price Index
08:00 CHF KOF Leading Indicator
08:55 GER Unemployment Rate
09:00 GER Gross Domestic Product Preliminary
13:30 USD Personal Income
13:30 USD Personal Spending
13:30 USD Personal Consumption Expenditures – Price Index
13:30 USD Core Personal Consumption Expenditures – Price Index
13:30 CAD Industrial Product Price
13:30 CAD Gross Domestic Product
14:45 USD Chicago Purchasing Managers’ Index
15:00 USD Michigan Consumer Sentiment Index
18:00 USD Baker Hughes US Oil Rig Count

UK Company Announcements:
Paragon Group
Evraz

US Company Announcements:
Eli Lilly and Company
Chevron
SAP SE
Honeywell International
Charter Communications
Caterpillar
Colgate-Palmolive Company
Ericsson 

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