Wall Street faces a shortened trading week with major corporate earnings and important economic reports on the horizon. Markets will close on Monday for the Martin Luther King Jr. holiday, but investors have plenty to watch once trading resumes.
Key Earnings Reports to Watch
Investors will closely examine fourth-quarter financial results from several industry giants. Streaming service Netflix leads the pack, with its performance under scrutiny. Semiconductor leader Intel will also report, alongside healthcare major Johnson & Johnson and consumer goods powerhouse Procter & Gamble.
Other notable companies scheduled to release earnings include 3M, United Airlines Holdings, Kinder Morgan, Halliburton, and GE Aerospace. These reports will provide crucial insights into corporate health across multiple sectors.
Economic Data Releases
Several delayed economic reports will finally reach the market this week. On Wednesday, construction spending data for October and pending home sales figures for December will be released.
Thursday brings a flood of important numbers. Initial jobless claims for the week ended January 17 will be announced alongside the first revision of third-quarter GDP. Delayed reports for November personal income, personal spending, and the PCE index will also be published.
The week concludes on Friday with final consumer sentiment data for January, plus flash readings for both services and manufacturing PMI from S&P.
Political Developments Add Complexity
Beyond the numbers, financial markets will monitor political developments. President Donald Trump is scheduled to speak at the World Economic Forum in Davos. His address comes amid escalating tensions with European nations over the Greenland dispute.
On Saturday, Trump announced plans to implement escalating tariffs on eight European countries: Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom, and Norway. These measures will continue until the United States gains permission to acquire Greenland, intensifying the diplomatic standoff over Denmark's Arctic territory.
Market Performance Last Week
US stocks finished slightly lower on Friday as the first week of earnings season concluded. The S&P 500 declined by 4.46 points, or 0.1%, closing at 6,940.01. The Dow Jones Industrial Average dropped 83.11 points, or 0.2%, to 49,359.33. The Nasdaq Composite fell 14.63 points, or 0.1%, to 23,515.39.
Smaller companies showed modest strength, with the Russell 2000 index gaining 3.18 points, or 0.1%, to reach 2,677.74.
For the entire week, the S&P 500 declined 26.27 points, or 0.4%. The Dow decreased by 144.74 points, or 0.3%, while the Nasdaq fell 155.96 points, or 0.7%.
Bond markets saw yields rise. The 10-year Treasury yield increased to 4.23% from 4.17%, while the 2-year Treasury yield climbed to 3.60% from 3.57%.
Investors now prepare for a week where corporate earnings, economic indicators, and geopolitical developments will all compete for attention in the financial markets.
