Bitcoin dominated headlines last week, marked by SEC-approved Bitcoin ETFs trading approximately $4.6 billion by Thursday. However, the impact on related stocks was mixed, with Coinbase down 15% and Marathon Digital Holdings down 21%. Contrarily, the S&P 500 closed the week 1.87% higher.
Tesla faced challenges, experiencing a 7.83% drop due to price reductions in China and a temporary factory shutdown in Germany. Hertz also announced a reduction in their electric vehicle fleet. This week, with Martin Luther King, Jr. Day leading to no trading on Monday, focus shifts to earnings reports from key players like Goldman Sachs and Morgan Stanley, alongside other indicators such as retail sales and jobless claims.
Here are five crucial aspects to monitor in the market this week:
Earnings:
Earnings season continues with a spotlight on banks and energy companies. Key companies to observe include Morgan Stanley, Goldman Sachs, and PNC Bank on Tuesday, Charles Schwab, US Bankcorp, and Kinder Morgan on Wednesday, and Schlumberger on Friday. Despite a sluggish start for bank stocks last week, the market awaits developments.
Retail Sales:
Wednesday morning’s release of retail sales data at 8:30 Eastern will provide insights into consumer spending habits. A stronger-than-expected report could signal a return to normalcy post-COVID, with the previous reading at 0.3% and a forecast of 0.4% for the current month.
Initial Jobless Claims:
An early indicator of the U.S. economy, initial jobless claims decreased by 1,000 to 202,000 last week, beating the forecast. This week, the market anticipates 204,000 claims. With four out of the last five weeks showing lower-than-expected claims, this indicator continues to be closely monitored.
Existing Home Sales:
Reflecting changes in the annualized number of sold residential buildings, existing home sales data gauges the strength of the U.S. housing market. The market reaction may depend on whether the data beats expectations, potentially signaling the Fed to maintain or increase interest rates, or falls short, fostering hopes of rate cuts.
OPEC Monthly Report:
Scheduled for 7 am ET on Wednesday, the OPEC Monthly Oil Market Report assesses critical factors affecting the global oil market and provides a crude oil market outlook for the upcoming year. Given crude oil’s recent stability around $70 per barrel, traders eagerly await insights into future oil demand.
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