The Week Ahead on Wall Street

Economic Data

The January Chicago PMI is due today. This barometer helps determine the health of the economy in the Chicago region, especially as it relates to manufacturing. Any reading greater than 50 indicates the manufacturing sector is expanding. A reading below 50 means the sector is contracting. In December, the Chicago PMI came in at 63.1.

Tomorrow, watch for the Bureau of Labor and Statistics’ number of job quits in December. November’s number showed 4.5 million Americans left their job, which was a record. Also, the final January Markit Manufacturing PMI is set for release along with December construction spending.

On Wednesday, January’s ADP employment report will be released, showing the number of private jobs added for the month. In December, 807,000 jobs were added, doubling analyst expectations. The US Census Bureau will also release the Q4 homeownership rate, which was at 65.4% for Q3 2021 — down 2% compared with the previous year.

Thursday, initial jobless claims will be published. After reaching a three-month high two weeks ago, last week’s numbers were down — falling to a better-than-expected 260,000. December factory orders are also due from the US Commerce Department.

A series of key labor market indicators are on the way Friday, with January’s non-farm payrolls, monthly unemployment rate, and average hourly earnings for January all set for release. The labor force participation rate for January is also on the Friday docket. As of the most recent figure, this number remains below pre-pandemic levels.

Earnings

NXP Semiconductors (NXPI) is scheduled to report its latest results today. The Dutch multinational semiconductor manufacturer mostly focuses on the automotive industry. At the end of last year, NXP introduced a new application processor that uses machine learning not only in cars, but also for homes and factories. Additionally, NXP established a partnership with Ford Motor Company which is expected to be mutually beneficial. With semiconductors in the spotlight, NXP will be on the radar of many investors.

After a tumultuous start to 2022, the tech sector looks to industry giant Alphabet (GOOGL) as it submits its most recent report card tomorrow. This will provide investors with a snapshot view into the health of the online advertising market. Alphabet’s most recent earnings report beat analyst expectations on both the top and bottom lines, with executives crediting ongoing growth in the cloud-computing market.

Wednesday, Facebook parent company Meta Platforms (FB) will post its most recent quarterly earnings. As the name suggests, Mark Zuckerberg’s company is going all-in on the metaverse, which is still something of an ill-defined idea. Investors will not only look to learn how Meta’s current portfolio companies like Facebook, Instagram, and WhatsApp are doing, but also about company plans to secure market share in the metaverse moving forward.

Just as Alphabet’s earnings data tracks online advertising, Amazon’s (AMZN) data helps investors understand the online retail market. It reports earnings on Thursday, marking Amazon’s second earnings report since Andy Jassy took over as CEO of the ecommerce giant. Last quarter’s report fell short of analyst expectations for both revenue and profits. The company also provided Q4 sales guidance that fell below Wall Street estimates.

On Friday, healthcare sector titan Bristol-Myers Squibb (BMY) will release its most recent quarterly earnings. Company executives are predicting that revenues will decline for the next several years, largely due to expiring protections for core drugs like Eliquis and Revlimid.

The Week Ahead at SoFi

Are you planning on looking for a new job sometime soon? If so, tune in to this week’s Your Next Dollar to hear about the financial considerations of making the leap. Save your seat!

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