John Hancock: Weekly Market Recap Week Ended January 24
Earnings progress
Expectations rose slightly as a second week’s batch of quarterly results came in. As of Friday, fourth-quarter net income was expected to rise by 12.7% compared with the year-ago quarter, based on S&P 500 companies that have already reported plus projections for those that haven’t yet released results. Such an outcome would mark the highest quarterly earnings growth rate in three years, according to FactSet.
Consumer worries
U.S. consumer sentiment weakened in January for the first time in six months, based on Friday’s reading from a University of Michigan survey. Relative to the previous month’s survey, growing numbers of participants said that they expect inflation and unemployment will rise this year.
Fed ahead
It’s widely expected that the U.S. Federal Reserve will keep interest rates unchanged when it concludes a two-day meeting on Wednesday, although post-meeting comments from Fed Chair Jerome Powell could move markets. The Fed cut rates a full percentage point in its final three policy meetings of 2024, but the outlook for further cuts has been clouded by mixed readings on inflation.
U.S. Q4 GDP pending
Thursday’s scheduled release of the U.S. government’s initial estimate of fourth-quarter GDP is expected to show that the economy remained on a solid growth track. The pending result will follow the 3.1% annual growth rate that the economy posted in last year’s third quarter and a 2.0% figure in the second quarter.
SOURCE: https://www.jhinvestments.com/weekly-market-recap#market-moving-news