This week holds significant importance for traders seeking insight into the bull market's trajectory. With four of the 'Magnificent 7' companies set to release their quarterly earnings, investors eagerly anticipate these reports. The 'Magnificent 7'—comprising AT&T, Nucor, Starbucks, Boeing, Lockheed Martin, Royal Caribbean Group, and Kimberly-Clark—will be in the spotlight as they provide crucial data points for market analysis.
In addition to the 'Magnificent 7', around 90 S&P 500 companies are scheduled to unveil their latest quarterly figures. The earnings season began with a lower opening for stock futures amid a packed week of financial disclosures and critical inflation data. Last Friday, the S&P 500 set a new intraday record after reaching an all-time closing high in the previous session, reflecting the market's dynamic pace.
Futures linked to the Dow Jones Industrial Average decreased by 67 points, equivalent to 0.2%, signaling a cautious start to the week. Among the companies set to report earnings are Starbucks, Boeing, General Motors, Visa, and Exxon. These updates will be crucial for investors gauging the economic outlook.
The Federal Reserve is scheduled to conduct its January meeting on Wednesday, coinciding with earnings announcements from Meta Platforms, Microsoft, and Tesla. On Thursday, Apple will release its results, adding to the week's flurry of financial activity. Additionally, key inflation data from the personal consumption expenditures price index will be released on Friday, providing further insight into economic conditions.
Thus far, 16% of S&P 500 companies have reported their fourth-quarter results, with 80% surpassing earnings per share expectations and 62% exceeding revenue forecasts. This trend suggests a robust performance across various sectors, offering optimism to market participants.
Despite the busy week, Fed funds futures indicate a more than 99% probability that the central bank will maintain interest rates at current levels. Meanwhile, S&P 500 and Nasdaq 100 futures experienced declines of 0.5% and 0.9%, respectively, on Sunday night.
"I think the story is still here" in tech, Ken Mahoney, CEO of Mahoney Asset Management, previously told CNBC.