The US markets are closed today for Martin Luther King Jr. Day. But as we look ahead to the week, there are several items to keep an eye on.
The S&P 500 index is currently in a bear market, with a handful of big tech stocks being the main cause. However, it's worth noting that three-quarters of the stocks in the index have risen by 20% or more from their 52-week lows, so there’s still hope out there.
Last week, we saw bank earnings come in better than expected, with interest rates giving their bottom line a boost. But Bank of America and Wells Fargo did warn of a slowing economy.
JPMorgan, Bank of America, Citi, and Wells Fargo have set aside around $4 billion to prepare for a potential downturn. This week, we'll be focusing on regional and investment banks as they report their earnings. Read our Reasons to Watch Bank Earnings in 2023.
In other news, the market for used Tesla (NASDAQ: TSLA) vehicles has taken a hit as owners become frustrated with recent price cuts. Tesla has cut prices on its electric vehicles by up to 20% globally, including in the US, following similar price cuts in Asia last week. The move has caused shares to fall in US trade and has affected rival companies. Some Tesla models now qualify for US credits and French subsidies. However, recent Tesla buyers have complained about missing out on the discounts. The price cuts come after Tesla missed delivery estimates for 2022.
On the cryptocurrency front, Bitcoin traded above $21,000 over the weekend, following a rebound amid optimism that it may have bottomed.
This week we also have the World Economic Forum's annual meeting kicking off in Davos, Switzerland, with European Central Bank President Christine Lagarde and the International Monetary Fund’s Kristalina Georgieva among the speakers.
Additionally, several Fed officials will also speak this week, giving investors more insight.
And lastly, we have a number of corporate earnings to look forward to this week, including Morgan Stanley (NYSE: MS) and Goldman Sachs Group, Inc. (NYSE: GS), plus Netflix, Inc. (NASDAQ: NFLX) and Procter & Gamble Co. (NYSE: PG) reporting.
Dig a little deeper into the market update:
Wells Fargo tops fourth-quarter profit expectations
JPMorgan 4Q profits rise, helped by higher interest rates
Bank of America profits rise; bank warns of slowing economy
UnitedHealth 4Q adj. profit tops Street
Companies reporting earnings today include Morgan Stanley (NYSE: MS) and Numinus Wellness (TSE: NUMI). Check out this week’s earnings preview.
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