Markets are closed on Monday, Jan. 15, for Martin Luther King Jr. Day. Monday is also the start of the annual World Economic Forum meeting in Davos, Switzerland—a gathering of global business and political leaders. Markets reopen on Tuesday to another round of bank earnings, with Morgan Stanley (MS) and Goldman Sachs (GS) kicking off the week. Several housing-market indicators are scheduled to be released, including housing starts and existing home sales. Federal Reserve Gov. Christopher Waller and Atlanta Fed President Raphael Bostic are scheduled to deliver remarks, while market watchers will get updates on U.S. retail sales, industrial production, and consumer sentiment, in addition to other economic indicators throughout the week. On Friday, Congress faces a deadline to fund some U.S. government agencies. Lawmakers had reportedly reached a deal by Saturday evening to avert a partial government shutdown, though it remained unofficial as of Sunday.
Bank Earnings Continue With Morgan Stanley, Goldman Sachs
Following a disappointing end of the week for some financial institutions, more national and regional banks will report earnings this week, starting with Morgan Stanley (MS) and Goldman Sachs (GS) when markets reopen on Tuesday. Goldman is looking to improve on a quarter in which its profits shrank by a third, while Morgan Stanley also has been dealing with smaller profits as mergers and initial public offerings slow. Charles Schwab (SCHW) and Discover Financial Services (DFS) earnings come on Wednesday, while M&T Bank Corp. (MTB) follows on Thursday, and Fifth Third Bancorp (FITB) and State Street Corp. (STT) on Friday. The reports come after a tough session for banks on Friday. Despite growing revenue, Wells Fargo & Co. (WFC) shares fell after it forecast lower interest income in 2024. Bank of America (BAC) and JPMorgan Chase (JPM) both fell after reporting an FDIC special assessment, levied after last year’s regional banking crisis, cut into fourth-quarter earnings.
Congress Faces Spending Deadline Friday as Shutdown Looms
Congress will have until Friday to resolve spending agreements for several government agencies, or else risk a partial government shutdown as some agencies go unfunded. Coming into the week, congressional leaders had reportedly reached a deal on short-term funding after agreeing earlier in the year to a top-line discretionary spending cap of $1.66 trillion. However, as of Sunday, the deal wasn’t final, and Congress must still pass a bill before the Jan. 19 deadline. Another spending deadline will come on Friday, Feb. 2, when the remaining government spending agreements expire.
Meeting of World Economic Forum in Davos To Focus on AI, Global Conflicts
The 54th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland will kick off on Monday and continue through Friday, providing an opportunity for political and business leaders from around the world to meet on a host of issues. The year’s meeting, titled “Rebuilding Trust,” will include participation from U.S. Secretary of State Antony Blinken, National Security Advisor Jake Sullivan, French President Emmanuel Macron, and key Middle East leaders as tensions in that region continue to escalate.
The meeting will feature sessions on renewable energy, artificial intelligence (AI), cybersecurity, climate change, and semiconductor chip manufacturing, with scheduled panelists to include OpenAI Chief Executive Officer (CEO) Sam Altman, Salesforce CEO Marc Benioff, Pfizer CEO Albert Bourla, Argentinian President Javier Milei, U.K. Finance Minister Jeremy Hunt, and European Central Bank President Christine Lagarde. In a preview of the meeting, the WEF issued its Global Risks Report 2024 last week, which showed AI-fueled misinformation was the top concern for global leaders, especially relating to election integrity and the democratic process.