The Week Ahead on Wall Street

Economic Data

No economic data is scheduled for release today.

Tomorrow, which is also Inauguration Day for President-elect Joe Biden, the January National Association of Home Builders Index will be released.

On Thursday initial jobless claims will be published, along with December housing starts, December building permits, and the January Philadelphia Fed Index. Homebuilding and permit issuance both increased steadily in November, underscoring the housing market’s strength despite slowing overall economic recovery. First-time jobless claims for the week ending January 9th surged to 965,000. This figure was much higher than economist expectations of 800,000. The total number of people receiving unemployment benefits was down to 18.4 million, but that is still far higher than pre-pandemic levels. Investors will be watching to see if this disheartening trend continues.

On Friday January Markit manufacturing PMI, January Markit services PMI, and December’s existing home sales will be released. In December the manufacturing Purchasing Managers Index (PMI) hit a 15-month low—a sign of trouble for the broader US economy. Rising tariffs were cited as a manufacturing cost that slowed growth.

Earnings

Today Netflix Inc (NFLX) will release earnings for the holiday quarter. Investors will likely be most interested in the streaming service’s subscriber growth. During the first and second quarters of 2020, Netflix added 15.8 million and 10.1 million subscribers respectively as most of the world sheltered in place due to coronavirus. If the company can meet management’s guidance this quarter, it will be a record year for the streaming service. Bank of America Corp (BAC), Goldman Sachs Group Inc (GS), Interactive Brokers Group Inc (IBKR), and Halliburton Co (HAL) also report.

Tomorrow Procter & Gamble Co (PG) is scheduled to release its latest results. Procter & Gamble is the world’s second-largest advertiser, surpassed only by Amazon (AMZN). The company has made significant changes to its marketing strategies in order to drive ecommerce sales. UnitedHealth Group Inc (UNH), Morgan Stanley (MS), Bank of New York Mellon Corp (BK), and Discover Financial Services (DFS) are also reporting.

On Thursday Intel Corp (INTC) will release earnings. Last week at CES, Intel unveiled a preview of its next chip release—a 12th-generation Alder Lake. The chip could help Intel catch up to Apple’s (AAPL) M1 CPU. Union Pacific Corp (UNP), International Business Machines Corp (IBM), and Travelers Companies Inc (TRV) are also scheduled to report.

Finally Ally Financial (ALLY) will release earnings on Friday. Ally outperformed the general market in 2020 and ended the year up by 20%. As the economy regains strength in 2021, analysts expect Ally’s car loan business to benefit. Schlumberger NV (SLB), New Oriental Education & Technology Group Inc (EDU), and Kansas City Southern (KUS) are also reporting.

The Week Ahead at SoFi

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