What to Expect in Markets This Week: Trump Davos Speech, MLK Holiday, PCE Inflation, Netflix, Intel Earnings

Introduction to the Week Ahead

It’s going to be a short trading week due to the Martin Luther King Jr. holiday, but there’s still plenty happening in the world of finance. Stock and bond markets are closed for the holiday on Monday, which is also the day the World Economic Forum begins in Davos, Switzerland. President Donald Trump is expected to speak on Wednesday in Davos, where he will address housing market reforms and other economic topics.

Economic Events and Reports

The delayed Personal Consumption Expenditures price index for October and November is scheduled for release, as is the final reading for third-quarter Gross Domestic Product. These reports will provide valuable insights into the state of the economy and inflation. The U.S. Supreme Court will also hear oral arguments in Fed Governor Lisa Cook’s challenge to Trump’s efforts to fire her, which could have significant implications for the Federal Reserve.

Earnings Reports

Several major companies are set to report their earnings this week, including Netflix, Intel, United Airlines, Johnson & Johnson, and 3M. Netflix’s report and commentary could offer additional insight into the streaming giant’s efforts to acquire Warner Brothers Discovery. Intel’s stock has been surging on optimism over its new AI PC chip and significant investments into the company from the U.S. government, Nvidia, and others.

Key Events Calendar

Here is a breakdown of the key events happening this week:

• Monday, Jan. 19: Markets closed for Martin Luther King Jr. holiday, World Economic Forum meeting in Davos begins
• Tuesday, Jan. 20: Key earnings reports from Netflix, 3M, United Airlines, and others
• Wednesday, Jan. 21: President Trump delivers remarks at the Davos World Economic Forum, Supreme Court oral arguments in Fed Governor Lisa Cook case, construction spending and pending home sales data
• Thursday, Jan. 22: Personal Consumption Expenditures price index, Gross Domestic Product – final reading, initial jobless claims, key earnings reports from GE Aerospace, Procter & Gamble, Intel, and others
• Friday, Jan. 23: World Economic Forum in Davos concludes, consumer sentiment – final, S&P flash U.S. PMI, key earnings reports from Ericsson, First Citizen, and Booz Allen Hamilton

Trump Speech Expected to Focus on Housing

Housing affordability is expected to be a key topic for Trump during his Wednesday address in Davos. He has announced several housing market reform proposals, including banning large institutional investors from buying homes and instructing Fannie Mae and Freddie Mac to purchase mortgage bonds to help lower borrowing costs. These proposals could have significant implications for the housing market and the economy as a whole.

Conclusion

In conclusion, this week is shaping up to be an exciting one in the world of finance, with several key events and reports on the horizon. From President Trump’s speech in Davos to the earnings reports from major companies, there’s a lot to keep an eye on. As Americans look to avoid common money mistakes, such as not saving enough and making too many impulse buys, it’s essential to stay informed about the latest developments in the economy and personal finance. By staying up-to-date on the latest news and trends, individuals can make more informed decisions about their financial lives and set themselves up for success in the years to come.