The new record high of the stock market will be challenged in the coming week by an assortment of corporate earnings reports and a new reading of the preferred inflation gauge of the Federal Reserve.
After the completion of financial institution reporting, attention will shift towards technology outcomes, beginning with the earnings of Tesla (TSLA) on Wednesday and Netflix (NFLX) on Tuesday. Additionally, reports from AT&T (ATT), Verizon (VZ), Johnson & Johnson (JNJ), and United Airlines (UAL) highlight one of the busiest weeks for quarterly reports on Wall Street.
Thursday is the anticipated release of the initial reading of economic growth for the fourth quarter. Friday is the scheduled date for the most recent release of the Personal Consumer Expenditures (PCE) Index, which is the preferred inflation gauge of the Federal Reserve.
All of this will occur as the stock market approaches or trades at its all-time peak. Friday’s closing price of 4,839 for the S&P 500 (GSPC) set a new all-time high for the benchmark average. Additionally, the Dow Jones Industrial Average (DJI) peaked at 37,863 at the close. In contrast, technology was the market leader on Friday, as evidenced by the 1.7% gain of the Nasdaq Composite (IXIC). For the month of January, all three main averages are currently in positive territory.
According to consumer sentiment data released by the University of Michigan, stocks reached all-time highs on Friday. The data indicated that consumers have the most optimistic outlook on the economy since July 2021.
Consumer optimism is congruent with the progressively optimistic perspective of Wall Street economists, as January data has consistently delivered positive surprises.
A review of December retail sales over the past week revealed that consumers ended 2023 in a stronger position than anticipated by many economists. Furthermore, despite the recent surge in news coverage regarding workforce reductions across multiple industries, the empirical data indicating the weekly tally of unemployment benefit claims has fallen to its lowest level since September 2022.
