5 Developments to Follow Next Week
Among the 5 developments to follow next week. Earnings reports and the stimulus package in the USA stand out.
Wall Street, which was defeated by Reddit users last week, was shaken by the
GameStop splash. While this effect is expected to continue next week, the developments to be followed will be as follows:
- 1.US Stock Markets Will Be Monitored Carefully
Last week, individual investors using Robinhood and similar trading platforms brought the rally in GameStop (NYSE: GME), AMC (NYSE: AMC) and other stocks advocated on social media, including Reddit's WallStreetBets.
US stock indices recorded their strongest weekly decline since October, with hedge funds selling stocks to compensate for losses due to short squeezes. However, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) shared positive results. Some people worry that this will cause volatility for the stock market, while others think it is just a show.
- Earnings Reports Will Be Announced
The companies continue will announce their quarterly earnings reports. Among the names expected to report on Tuesday are Alphabet (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN). During the week Qualcomm (NASDAQ: QCOM), Snap (NYSE: SNAP) and Pinterest (NYSE: PINS) will also report on Tuesday.
Pfizer (NYSE: PFE), GlaxoSmithKline (NYSE: GSK), AbbVie (NYSE: ABBV), Biogen (NASDAQ: BIIB), Gilead Sciences (NASDAQ: GILD), Merck (NYSE: MRK) and Bristol-Myers Squibb (NYSE: BMY) are among the names to be monitored.
- January Job Statistics
January non-farm payroll report will give the first outlook on US President Joe Biden's presidency.
The report is expected to increase hiring after 140,000 people lost their jobs in December. On the other hand, it is stated that it is not possible to see important developments until the economy starts to move again. For the unemployment rate, the expectation is that it remains unchanged at 6.7 percentage points.
Last week, Fed Chairman Jerome Powell said that the economic recovery will be parallel with vaccine distribution.
- Incentive Package Expectation in the USA
The US House of Representatives and the Senate will work overtime to give new incentives. Despite the despair of Republicans and some Democrats over the size of the $ 1.9 trillion package proposed by US President Biden, the Senate will act this week.
President Biden stressed that Congress should move quickly on Friday, and many economists believed that additional incentives were needed.
- FED Speeches
This week, FED officials will give a speech on the labor market and economy.
Atlanta Fed President Raphael Bostic and Boston Fed chief Eric Rosengren will speak on Monday, while New York Fed President John Williams and Cleveland Fed President Loretta Mester will speak on Tuesday.
St.Louis Fed President James Bullard, Philadelphia Fed director Patrick Harker, Mester from Cleveland Fed and Chicago Fed executive Charles Evans will also be there.
Source:
Investing.com
