Your Trading Week Ahead — January 23rd

Welcome to Your Trading Week Ahead for January 23rd. Here’s what you need to know before you go…

Quick recap

Equity markets are coming off a volatile week and broad sell-off across the major indices. Rising inflation and uncertainty surrounding future monetary policy finally began sparking fear among investors — leading to one of the worst weeks for stocks since March 2020.

The S&P 500 ultimately finished down 5.68% at 4,397. The Dow closed lower by 4.58% at 34,265. Tech stocks were decimated, as the Nasdaq finished down 7.55% at 13,768.

Crypto update

It’s not just equities falling like a rock. Many cryptocurrencies are in a world of pain as well — with most popular names down double digits on the week.

Bitcoin slipped below the $40k level on Thursday and never looked back. At writing, BTC is trading near $36k, down 16% from last Sunday. And that comes after an already ugly start to the year. The leading crypto is down an astonishing 47% from it’s all-time high of $69k set in early November.

Ethereum (ETH) -24.5%, Binance Coin (BNB) -23.4%, Cardano (ADA) -21.3%, Solana (SOL) -33.8%, XRP (XRP) -20%, Terra (LUNA) -21%, Polkadot (DOT) -32%, Avalanche (AVAX) -30.8%, Dogecoin (DOGE) -20.6%, and Shiba Inu (SHIB) -27.3% are all trading sharply lower on the week.

Here’s recent performance for some of the most popular crypto assets:

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What to watch this week

FOMC meeting

The Federal Open Market Committee’s January meeting on Wednesday is now in focus amid a busy week for key economic and inflation data (detailed in the economic calendar below). While this month’s FOMC meeting is not expected to produce any immediate changes, market participants will be looking for additional clues to impending policy changes ahead and the initial interest rate hike coming in March.

Earnings roundup

Earnings season is now in full swing as Q4 reports continue flowing in. And boy, do we have a line-up this week.

Apple Inc. (AAPL), Tesla (TSLA), AT&T Inc. (T), International Business Machines (IBM), General Electric (GE), 3M Company (MMM), Microsoft (MSFT), Boeing (BA), Freeport-McMoRan Inc. (FCX), Mastercard (MA), Visa (V), McDonalds (MCD), Johnson & Johnson (JNJ), Phillips 66 (PSX), Raytheon Technologies (RTX), JetBlue Airways (JBLU), Southwest Airlines Co. (LUV), and Intel (INTC) highlight the the biggest names to watch.

Considering the recent market action, it’ll be critical to see how traders respond to the fresh round of data from these mega-cap monsters.

Here’s a full break down of the week ahead:

Economic calendar

There’s a ton of events on the calendar this week with the potential to move markets. Here’s some of the most important things to watch:

• Markit manufacturing and services PMI (Jan.) – Monday at 9:45am ET
• S&P Case-Shiller national home price index (YoY change Nov.) – Tuesday at 9am ET
• FHFA national home price index (YoY change Nov.) – Tuesday at 9am ET
• Consumer confidence index (Jan.) – Tuesday at 10am ET
• Advance report on trade in goods (Dec.) – Wednesday at 8:30am ET
• New home sales starts (SAAR Dec.) – Wednesday at 10am ET
• FOMC statement – Wednesday at 2pm ET
• Fed Chair Jerome Powell news conference – Wednesday at 2:30pm ET
• Initial and continuing jobless claims – Thursday at 8:30am ET
• Gross domestic product (SAAR Q4) – Thursday at 8:30am ET
• Final sales of domestic product (SAAR Q4) – Thursday at 8:30am ET
• Durable goods orders (Dec.) – Thursday at 8:30am ET
• Core capital equipment orders (Dec.) – Thursday at 8:30am ET
• Pending home sales index (Dec.) – Thursday at 10am ET
• PCE inflation and Core PCE inflation (month-to-month change Dec.) – Friday at 8:30am ET
• PCE inflation and Core PCE inflation (year-over-year change Dec.) – Friday at 8:30am ET
• Real disposable incomes (Dec.) – Friday at 8:30am ET
• Real consumer spending (Dec.) – Friday at 8:30am ET
• Personal income (Dec.) – Friday at 8:30am ET
• Consumer spending (Dec.) – Friday at 8:30am ET
• Employment cost index (Q4) – Friday at 8:30am ET
• University of Michigan consumer sentiment index (final Jan.) – Friday at 10am ET
• University of Michigan 5-year inflation expectations (final Jan.) – Friday at 10am ET

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