As we enter a new week filled with anticipation and economic forecasts, the financial landscape presents a blend of opportunities and challenges for seasoned investors and novices alike. The economic calendar is bustling with fresh data on new home sales, durable orders, construction prices, and, notably, the core Personal Consumption Expenditures (PCE) Price Index. This week also boasts a robust earnings calendar featuring tech giants, retailers, and financial institutions.
Economic Indicators
The PCE Price Index, scheduled for release on Thursday, stands out as a crucial inflation barometer. It's the Federal Reserve's preferred inflation measure, making this release a pivotal moment for interest rate expectations. This comes after January's higher-than-expected Consumer Price Index (CPI) and Producer Price Index (PPI) reports stoking inflation concerns. Additionally, several Fed officials will share their insights on economic data, providing valuable context to the PCE findings.
The housing market will also be in the spotlight, with updates on new home sales, prices, and pending home sales. These indicators offer a glimpse into the real estate sector's health, an essential component of the broader economy.
Earnings Spotlight: A Tech-Driven Week
The tech sector is poised for another dramatic week, fueled by Nvidia's impressive earnings report, which sparked rallies across the semiconductor industry. With companies like Workday, Salesforce, and Dell Technologies on the earnings docket, investors will closely watch for signs of continued momentum, particularly in AI-driven products and services.
Retailers and financial institutions are not to be overlooked, with Lowe's, Anheuser-Busch InBev, and the Royal Bank of Canada reporting. These earnings will provide insights into consumer spending trends and the financial sector's stability.
Earnings Calendar ?️:
| Date | Companies Reporting |
|---|---|
| Monday, Feb. 26 | Workday, Zoom Video, Domino’s Pizza, Unity Software |
| Tuesday, Feb. 27 | Lowe’s, ONEOK, Bank of Montreal, American Tower, AutoZone |
| Wednesday, Feb. 28 | Salesforce, Snowflake, Royal Bank of Canada, HP, TJX, Paramount Global, Monster Beverage |
| Thursday, Feb. 29 | Anheuser-Busch InBev, Dell Technologies, Toronto-Dominion Bank, Hewlett Packard Enterprise, Best Buy |
| Friday, March 1 | RadNet, Plug Power, FuboTV |
More companies to present earnings this week >>
Upcoming Economic Events:
| Event | Date |
|---|---|
| New Home Sales | Monday, Feb. 26 |
| Home Prices | Tuesday, Feb. 27 |
| Pending Home Sales | Thursday, Feb. 29 |
| Core PCE Price Index Release | Thursday, Feb. 29 |
| Fed Officials' Remarks | Thursday and Friday, Feb. 29 & March 1 |
IPO News:
The quiet period for Amer Sports is set to end, allowing analysts to begin issuing ratings. Currently, Amer Sports is trading around 15% above its initial offering price, boasting a portfolio of renowned brands like Arc'teryx and Salomon. The quiet periods for Alto Neuroscience (ANRO) and Fractyl Health (GUTS) will also conclude.
Attention is also turning towards Reddit's (RDDT) anticipated IPO, with the company earmarking a significant share allocation for its active user base.
Furthermore, Reddit has broadened its partnership with Google (GOOG), enhancing content discoverability and access on its platform, underscoring its preparation for the IPO by bolstering user engagement and content accessibility.
Fed's Key Inflation Gauge Ahead, Officials to React
As Fed officials seek further proof of declining inflation, this Thursday's PCE Price Index is pivotal. Deutsche Bank expects a rise in core PCE inflation to 0.36% for January, up from December. Despite a slower-than-expected fall in recent CPI figures, officials were optimistic about the six-month downtrend in inflation, tempering expectations of a March rate cut.
Immediate feedback on the inflation report will come from Federal Reserve officials including Gov. Waller, and Presidents Logan, Bostic, Daly, Goolsbee, and Mester, who are set to speak this Thursday and Friday.
