What To Expect in the Markets This Week

As earnings reports continue to roll in through the week, market watchers will tune in for the latest inflation numbers when the Consumer Price Index (CPI) is released Tuesday. After ticking higher last month, Federal Reserve officials are watching for more signs that inflation is continuing its downward trend.

Retail sales numbers on Thursday will help show if consumers continued their strong shopping habits in January. Meanwhile, the homebuilder confidence index will indicate whether favorable residential construction trends continue.

Several companies will report earnings this week, including Coca-Cola Co., Cisco Systems Inc., and Stellantis NV.

Monday, Feb. 12

• Arista Networks Inc. (ANET) and Cadence Design Systems Inc. (CDNS) report earnings
• Monthly U.S. federal budget statement (January)

Tuesday, Feb. 13

• Coca-Cola (KO), Moody’s Corp. (MCO), Shopify Inc. (SHOP), Airbnb Inc. (ABNB), and Marriott International Inc. (MAR) report earnings
• Consumer Price Index (CPI) (January)

Wednesday, Feb. 14

• Cisco (CSCO), Sony Group Corp. (SONY), and Kraft Heinz Co. (KHC) report earnings

Thursday, Feb. 15

• Applied Materials Inc. (AMT), Stellantis (STLA), Occidental Petroleum Corp. (OXY), John Deere & Co. (DE), DoorDash Inc. (DASH), CBRE Group Inc. (CBRE), Coinbase Global Inc. (COIN), and DraftKings Inc. (DKNG) report earnings
• Initial jobless claims (Week ending Feb. 10)
• US retail sales (January)
• Import price index (January)
• Industrial production (January)
• Capacity utilization (January)
• Homebuilder Confidence Index (February)

Friday, Feb. 16

• Producer Price Index (PPI) (January)
• Housing starts (January)
• Building permits (January)
• Michigan Consumer Sentiment Index (Preliminary February)

Fed Officials To Watch Inflation Data Closely

As the Federal Reserve closely watches the path of inflation, Tuesday’s consumer price index should offer some clues as to whether price growth continues to slow.

While inflation has been trending downward, the most recent CPI reading showed prices edging back higher in December, growing at a 3.4% annual rate. Since then, other inflation measurements have shown the deceleration of inflation, so investors will be watching to see if the trend continues. 

Federal Reserve voted to keep interest rates steady at its last meeting. Several officials said last week they would be closely watching inflation data to see if it continues to trend toward the target of 2%.

Earnings Reports Offer Window into Economic Conditions Across Sectors

A string of earnings reports this week will give investors a look at a wide swath of components of the economy, from consumer staples to commercial real estate.

Two constituents of the Dow Jones Industrial Average (DJIA) are set to issue their quarterly financial statements this week. Beverage giant Coca-Cola discloses whether it has continued its sales momentum on Tuesday while computer network equipment maker Cisco on Wednesday looks to rebound after reporting a slowdown in product orders last quarter.

Jeep maker Stellantis’ report on Thursday comes after the vehicle maker negotiated a new contract with employees last fall, ending a six-week labor strike. 

John Deere’s earnings on Thursday will give investors a window into the agricultural sector.  Meanwhile, DoorDash earnings will show the strength of the gig economy as the food-delivery service app tries to add more users. 

Another company investors may be eyeing is CBRE Group, a commercial real estate company that could shed some light on the sector with its Thursday earnings report. The industry’s condition has created concerns that some regional banks like New York Community Bancorp Inc. (NYCB) are too exposed to weakness in the market.