There have been some positive economic developments recently, particularly in the US and Europe.
The job market is improving, but people's wages aren't increasing as quickly. This is actually a good thing for the economy because it allows for slow and steady growth. Companies are also trying to save money to support this.
Some people are concerned about how people view the economy and investing, but JPMorgan thinks there may be room for improvement.
In China, more people are starting to go out as the coronavirus is not as severe in some major cities. The government is also taking steps to support the economy, such as making it easier for some companies to obtain loans.
ISM Services Index
However, a report in December showed that the ISM Services index fell below the level of 50, which indicates a contraction. This is the first time this has happened since May 2020.
UBS is expecting a boost in its wealth business due to the reopening of China and plans to hire more staff. This week, several banks are releasing their quarterly earnings reports.
Tech Companies Sued
Finally, the public school district in Seattle is suing several tech companies, including TikTok, Instagram, Facebook, YouTube, and Snapchat, over the mental health crisis among young people. The school district is seeking to hold the companies accountable.
Dig a little deeper into the market update:
Companies reporting earnings today include Acuity Brands Inc (NYSE: AYI), Commercial Metals Company (NYSE: CMC), PriceSmart, Inc. (NASDAQ: PSMT), Accolade Inc (NASDAQ: ACCD), Applied Digital Corp (NASDAQ: APLD), E2open Parent Holdings Inc (NYSE: ETWO), and WD-40 Company (NASDAQ: WDFC). Check out this week’s earnings preview.