General, Forex

Week Ahead market preview: Key earnings releases as markets trade near record highs

George Walker, Friday, 24 January 2020

Markets trade near record highs ahead of key earnings releases

Over two thirds of major US companies have announced results that have come in at the top end of Wall Street’s estimates, causing US markets to trade at the highest levels ever recorded. The coming week sees some of the largest companies in the world continue the earnings onslaught. The likes of Apple, Pfizer, Microsoft, Facebook, Alibaba, McDonald’s, Amazon and Exxon Mobile are just some of the corporate giants reporting this week. Share price movements from the aforementioned can individually move markets as they affect sector peers and sentiment as a whole, so when there’re so many reporting in one week, traders will need to be aware of times and dates of these earnings releases.

Investors will be paying particular attention to Boeing and Tesla. These shares are currently at opposite ends of the investor confidence scale. Tesla, who’s share price has doubled in the past three months, are trading at record highs and have become the first car maker publicly listed on the US exchange to hit the $100 billion valuation. Last time out in October, Tesla reported a rare quarterly profit and have also announced a ramp-up of production at its China-based factory. Will the company continue to deliver good news, or are we set to see profit taking take hold in the upcoming results as investors cash in on gains? Tesla report earnings after US markets close on Wednesday.

Boeing have been battling with investor confidence since March 2019, which saw the second of its 737 MAX aircrafts crash in the space of five months. Since then, the aircrafts have been grounded pending regulatory approval for software changes and pilot training. Shares were suspended last week following an announcement stating that the 737 MAX will not return to service until mid-year, longer than initially expected, mainly due to the shortage of training simulators for pilots. Shareholders of Boeing will be hoping majority of the bad news has already been priced into the share price and will want to see strong forward guidance for the remainder of the year. Boeing report earnings before US markets open on Wednesday.

We have a big week ahead on the macro data front as well. The standout events will be the Interest Rate decisions and press conferences from the Federal Reserve on Wednesday evening, and the Bank of England on Thursday afternoon. Following the decisions from the Federal Reserve to cut interest rates on multiple occasions last year to boost growth and avoid a potential recession, the tide seems to have shifted. Data from the US has been coming out inline or stronger than expected, causing investors and traders to take the view that the easing measures will take a back seat from the Federal Reserve, but will be listening closely to comments made on forward guidance during the press conference following the announcement.

The Bank of England update on the other hand, could be eventful. Since Governor Mark Carney’s comments stating that the BoE could promptly reduce interest rates if the UK economy shows signs of slowing down, traders have been switching between bullish and bearish positions reading macro data on a case by case basis. According to recent statistics, there’s an equal chance of a 0.25% cut and rates remaining unchanged. As far as margins go, it’s very evenly split potentially making the interest rate announcement on Thursday at 12:00 extremely volatile particularly for the value of GBP.

Along with the Quarterly Inflation Report and Interest Rate Decision, the board of nine MPC members vote on whether to cut, hike or leave rates unchanged. Last time out there were seven votes for unchanged, two for cutting the rate, and none for a hike. Should there be no change in the interest rate announced, these votes will be key to watch as markets could start to price in future changes. A press conference follows the update at 12:30 in which Governor Mark Carney will elaborate on reasons for any decisions that have been made. Traders will need to think carefully about positions held in GBP and the UK100 as it isn’t clear what decision will be made - so these markets could be extremely volatile.

All times indicated are GMT. 

ECONOMIC CALENDAR (all times are GMT)

Monday, 27 January

07:00 GER Gfk Consumer Confidence Survey

09:00 GER IFO – Business Climate

09:00 GER IFO – Current Assessment

09:00 GER IFO – Expectations

15:00 USD New Home Sales

15:00 USD New Home Sales Change

15:30 USD Dallas Fed Manufacturing Business Index

UK Company Announcements:

Petra Diamonds

US Company Announcements:

N/A

Tuesday, 28 January

07:00 CHF Imports

07:00 CHF Exports

07:00 CHF Trade Balance

11:00 GBP CBI Distributive Trades Survey – Realised

13:30 USD Durable Goods Orders

13:30 USD Durable Goods Orders ex Transport

13:30 USD Durable Goods Orders ex Defence

13:30 USD Nondefense Capital Goods Orders ex Aircraft

13:55 USD Redbook Index

14:00 USD S&P/CASE-Shiller Home Price Indices

15:00 USD Richmond Fed Manufacturing Index

15:00 USD Consumer Confidence

21:30 USD API Weekly Crude Oil Stock

23:30 AUD Westpac Leading Index

23:50 JPY BoJ Summary of Opinions

UK Company Announcements:

Crest Nicholson

Pz Cussons

Barr (A.G.)

US Company Announcements:

Apple Inc

Pfizer Inc

SAP SE

United Technologies Corporation

Lockheed Martin Corporation

3M Company

Stryker Corporation

Canadian National Railway

Advanced Micro Devices Inc

HCA Healthcare

Koninklijke Philips N.V.

Equity Residential

eBay Inc

Wednesday, 29 January

00:30 AUD Consumer Price Index

00:30 AUD RBA Trimmed Mean CPI

05:00 JPY Consumer Confidence Index

09:00 CHF ZEW Survey – Expectations

15:00 USD Pending Home Sales

15:30 USD EIA Crude Oil Stocks Change

19:00 USD Fed Interest Rate Decision

19:30 USD FOMC Press Conference

21:45 NZD Trade Balance

21:45 NZD Imports

21:45 NZD Exports

UK Company Announcements:

N/A

US Company Announcements:
Microsoft Corporation

Facebook Inc

Alibaba Group Holding Limited

Mastercard Incorporated

AT&T Inc

Novataris AG

Boeing Company

McDonalds Corporation

PayPal Holdings Inc

General Electric Company

Tesla Inc

Thursday, 30 January

07:00 GER Import Price Index

08:00 CHF KOF Leading Indicator

08:55 GER Unemployment Rate

08:55 GER Unemployment Change

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

10:00 EUR Unemployment Rate

12:00 GBP Bank of England Quarterly Inflation Report

12:00 GBP BoE Asset Purchase Facility

12:00 BoE MPC Vote Unchanged

12:00 BoE MPC Vote Cut

12:00 GBP BoE Vote Hike

12:00 GBP Monetary Policy Minutes

12:00 GBP Bank of England Minutes

12:00 GBP BoE Interest Rate Decision

12:30 GBP BoE’s Governor Carney Speech

13:00 GER Consumer Price Index (Preliminary)

13:00 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 (Preliminary)

13:30 USD Personal Consumption Expenditures Prices (Preliminary)

13:30 USD Core Personal Consumption Expenditures (Preliminary)

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 Fresh Food, Energy

23:30 JPY Jobs / Applicants Ratio

23:30 JPY Unemployment Rate

23:50 JPY Retail Trade

23:50 JPY Large Retailers’ Sales

23:50 JPY Industrial Production (Preliminary)

UK Company Announcements:

Unilever

Rank

Renishaw

Royal Dutch Shell A/B

Evraz

US Company Announcements:
Amazon.com Inc

Visa Inc

Verizon Communications Inc

Coca-Cola Company

Amgen

Eli Lilly and Company

Thermo Fisher Scientific Inc

Danaher Corporation

United Parcel Service Inc

Friday, 31 January

GBP Brexit Deadline

02:00 CNY Non-Manufacturing PMI

02:00 CNY NBS Manufacturing PMI

07:30 CHF Real Retail Sales

07:00 GER Retail Sales

10:00 EUR Consumer Price Index (Preliminary)

10:00 EUR Consumer Price Index – Core (Preliminary)

10:00 EUR Gross Domestic Product (Preliminary)

13:30 USD Personal Consumption Expenditures Prices

13:30 USD Core Personal Consumption Expenditures

13:30 USD Personal Income

13:30 USD Personal Spending

13:30 CAD Gross Domestic Product

14:45 USD Chicago Purchasing Managers Index

15:00 USD Michigan Consumer Sentiment

18:00 USD Baker Hughes US Oil Rig Count

UK Company Announcements:

Hargreaves Lansdown

SSE

US Company Announcements:
Exxon Mobil Corporation

Chevron Corporation

Honeywell International Inc

Charter Communications Inc

Caterpillar Inc

Colgate-Palmolive Company

Illinois Tool Works Inc

Aon PLC

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