Top 5 things to watch in the markets for the coming week


By Noreen Burke – Investors will continue to monitor progress towards more fiscal stimulus in the United States during the shortened holiday week ahead and, as the earnings season begins to slow, there are still some big ones names to report. On the economic calendar, the US retail sales figures and the minutes of the last Federal Reserve meeting will be the main events to watch. Market participants will also be closely following Thursday’s hearing before the House Financial Services Committee on the recent stock market crisis at GameStop (NYSE 🙂 and other heavily shorted stocks and bitcoin is approaching 50,000. $. Here’s what you need to know to start your week.

  1. Stimulus

President Joe Biden’s $ 1.9 trillion Covid-19 relief package will take the next step during the week, with the House Budget Committee consolidating all components into one piece of legislation.

Biden’s proposed spending program, in addition to the $ 4 trillion promulgated by his Republican predecessor Donald Trump, would have significant consequences for a global economy that is slowly and unevenly recovering from its worst recession last year. since the Great Depression of the 1930s.

US Treasury Secretary Janet Yellen on Friday urged G7 finance officials to provide more budget support to promote a robust and sustainable recovery, telling them “now is the time to do it big” .

  1. Earnings

The and closed at record highs on Friday as expectations of more budget support from Washington to help the US economy recover boosted risk appetite. Investors will look to Walmart (NYSE 🙂 earnings on Thursday for a glimpse of strength in consumer spending.

Investors will also examine earnings reports from hotels, cruise lines and other businesses that have been hit hard by the pandemic for indications that could be the first to rebound as it recedes.

Hilton around the world Holdings (NYSE 🙂 and Hyatt Hotels (NYSE 🙂 are expected to report their results on Wednesday, followed by Marriott (NASDAQ :), Norwegian Cruise Line (NYSE 🙂 and TripAdvisor (NASDAQ 🙂 on Thursday.

U.S. stock markets will be closed Monday for Presidents’ Day.

3. Economic data

The highlights of the U.S. economic calendar will be data for January and for January, which should show the economy has got off to a good start in 2021.

Investors will also follow Thursday’s figures as the labor market recovery remains slow. Labor market woes strengthen the case for President Biden’s proposed $ 1.9 trillion recovery package, which is under consideration in Congress.

Meanwhile, the Federal Reserve’s January policy meeting is scheduled for Wednesday.

  1. Bitcoin $ 50,000

hit a new record on Sunday, surpassing the $ 49,000 level for the first time.

Bitcoin received a boost after BNY Mellon (NYSE 🙂 announced last week that it will help clients hold, transfer, and issue digital assets. The move came just days after Elon Musk’s Tesla (NASDAQ 🙂 said he bought $ 1.5 billion worth of cryptocurrency and would accept it as a form of payment for his cars, reporting a push into the mainstream for digital assets.

Bloomberg reported on Saturday that Morgan stanley (NYSE 🙂 The investment arm is weighing whether to add digital currency to its list of possible bets.

Some market participants, however, continued to advise caution.

“Investors should remember that bitcoin is not just a get-rich-scheme. In fact, it has been, and will continue to be, sensitive to downward price movements – particularly when short-term gainers are looking to withdraw their profits, ”said Gavin Smith, managing director of the Panxora Group cryptocurrency consortium.

5. Stonks hearing

Executives from Robinhood, Citadel, Melvin Capital and Reddit will testify before the U.S. House Financial Services Committee on Thursday. The committee examines how retail traders drove the stocks of GameStop (NYSE 🙂 and other heavily shorted companies to extreme levels, resulting in massive losses for hedge funds like Melvin who had bet against these stocks.

Robinhood has emerged as a popular place to trade stocks, but has been criticized for temporarily restricting trading in hot stocks.

The trading platform said it had to impose the restrictions after wild trading in stocks triggered a $ 3 billion margin call to its clearinghouse, straining the balance sheet of the company. ‘business.

–Reuters contributed to this report


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