Markets are closed Monday for the Martin Luther King Jr. Day federal holiday. Donald Trump is set to be inaugurated as the U.S. president on the same day. Investors are watching for corporate earnings reports, with Netflix (NFLX), United Airlines (UAL), Johnson & Johnson (JNJ), American Express (AXP), and Verizon Communications (VZ) among the companies expected to release quarterly financial updates this week.
Economists will get data on consumer sentiment, existing home sales, and initial jobless claims. Federal Reserve officials will be prohibited from making public comments as part of the blackout period ahead of next week’s meeting.
Donald Trump Inauguration, King Holiday Highlight Economic Calendar
Monday is a holiday for investors as stock and bond markets, along with banks and the federal government, will be closed for the Martin Luther King Jr. Day holiday. Monday still will be noteworthy with the scheduled inauguration of Donald Trump as U.S. president. Trump has said he would implement some policies on his first day in office, including potential tariff and immigration changes that could affect business and investor sentiment.
There were few major economic releases this week, although Federal Reserve officials likely will be following January consumer sentiment data on Friday—including the closely watched inflation expectations. Other economic data this week includes initial jobless claims on Thursday and existing home sales on Friday. Fed officials will be in the blackout period that prohibits them from making public comments ahead of next week’s meeting.
Tech, Health, Financials Lead Earnings This Week
Netflix leads this week’s earnings reports when it is expected to issue its quarterly financial update on Tuesday, coming after the streamer projected full-year revenue growth of 15%. After several banks already have delivered better-than-expected earnings reports, more financial firms are on tap this week to release their quarterly financial data, including Capital One and Fifth Third Bank on Tuesday and Discover Financial on Wednesday. American Express is expected to issue its fourth-quarter report on Friday, after the credit card issuer raised its full-year profit outlook in its prior report. Investors are looking for a rebound from 3M on Tuesday after two of its three divisions posted declining sales in the previous quarter. After rival Delta Air Lines posted strong earnings earlier this month, United Airlines is set to report on Tuesday after its earnings outlook for the quarter was better than analysts had projected. On Wednesday, consumer products maker Procter & Gamble earnings are expected to come out after the company’s sales in the prior quarter were below estimates. Travelers’ Wednesday report comes as some insurance providers have experienced share-price declines over worries about the costs of the California wildfires. The earnings reports of railroad shipping firms Union Pacific and CSX—expected on Thursday—will provide insight into the strength of the transportation and shipping sector. GE Aerospace’s report, also set to release that day, will show whether its commercial engines and services division can return to expectations, while GE Vernova is expected to report Wednesday amid analyst optimism over its gas turbines. On Friday, Verizon Communications will look to show continued growth in its wireless phone and internet subscriber base.