January 18, 2015
US Equities reversed a five day losing skid on Friday to finish the week on a high note after a solid consumer confidence number helped to calm the market. Oil futures led the rally after the down trodden commodity showed new signs of life closing up near $49 a barrel. The CBOE Volatility index finished just below $21 in connection with the newly found optimism after remaining 2% higher for most of the week. The 10 year benchmark continues to defy expectations with an 1.815% closing yield after a flight to safety prompted heavy demand for the last several sessions before changing course slightly on Friday.
Although markets will remain closed tomorrow in observance of Martin Luther King Day; the balance of the week is expected to be power packed with a trifecta of global events which may likely add to the year’s early ramp up in volatility. Tuesday will host President Obama’s State of the Union address which is rumored to have several tax changes in the works for the besieged middle class to further kick start the economy while closing loopholes for the ultra-wealthy. Any other surprises may easily rattle markets if a more diplomatic stance isn’t extended towards a newly elected Republican lead Congress. The World Economic Forum re-assembles in Davos Switzerland on Wednesday with many of the globe’s most dominant political and business figures present to debate many of society’s most pressing issues. Historically, this event has served as a platform for announcing several business deals along with major shifts in policy. However, the most widely anticipated news so far in 2015 will be Thursday’s prolonged decision from the ECB on some overreaching form of Quantitative Easing (QE) for the entire European Union. Early indications signal a series of sovereign debt purchases by each member to avoid a blanket approach which would only penalize the stronger members like Germany for additional bailouts for weaker countries in the future.
Quarterly Earnings will also remain in full swing with several S&P components all slated to release during the course of the week. So far mixed results have prevailed with multiple financial companies sparking some of last week’s turmoil after disappointing results surprised amid recent downward revisions.
Major Earnings for the Upcoming Week:
Monday:
A.M. – Markets
P.M. – Closed
Tuesday:
A.M. – BHI, DAL, HAL, JNJ, MS, PETS, SAP
P.M.– AMD, CA, CREE, NFLX, SIX
Wednesday:
A.M. – AMTD, ASML, FITB, GD, VIVO, UNH
P.M. – AXP, DFS, EBAY, FFIV, KMI, SNDK, XLNX
Thursday:
A.M. – BBT, CP, JCI, LUV, TRV, UAL, UNP,VZ
P.M. – ALTR, COF, ISRG, SBUX
Friday:
A.M. –BK, DRD, GE, HON, KMB, MCD, STT
Economic Releases (1/19 – 1/23):
Monday:
Markets Closed
Tuesday:
9:00 am CT – Housing Market Index
9:00 am CT – Fed’s Powell Speaks
Wednesday:
6:00 am CT – MBA Purchase Applications
7:15 am CT – Housing Starts
Thursday:
7:30 am CT – Weekly Jobless Claims
8:00 am CT – FHFA House Price Index
8:45 am CT – PMI Mfg. Index Flash
9:30 am CT – Natural Gas Inventories
10:00 am CT – Oil Inventories
Friday:
7:30 am CT – Existing Home Sales
9:00 am CT – Leading Economic Indicators |