By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- Fed speakers will be all over the tape this week, highlighted by Fed Chairman Jerome Powell speaking in Washington on Tuesday. The Federal Open Market Committee increased rates 25 basis points last week but will likely remain hawkish in light of last Friday’s outstanding employment report for January. The markets have been looking for signs of a pivot, but so far the Fed hasn’t indicated the timing of one.
- More companies will report earnings this week with ride-share companies Lyft and Uber, food giants Pepsi, Chipotle, and Tyson, and Disney all on the calendar. Through last Friday (Feb. 3), 251 of the S&P 500 members have reported with 69.8% posting positive earnings surprises (with an aggregate surprise of 1.3%)
- The economic calendar is highlighted by Thursday’s University of Michigan consumer sentiment data and Tuesday evening, President Joe Biden will deliver the State of the Union address. Consumer sentiment has been rising in recent months after bottoming last summer when inflation was peaking.
Three Things to Know
- January’s unemployment rate was 3.4%, the lowest since 1969. (Source: Haver)
- Next Sunday (Feb. 12 the Kansas City Chiefs and Philadelphia Eagles will square off in Super Bowl 57 or Super Bowl LVII. Because the football season runs into two calendar years, Roman numerals are used to identify each Super Bowl and Super Bowl Sunday is the second-largest day for food consumption in the United States, with only Thanksgiving ahead of it. (Source: www.history.com)
- The U.S. Constitution says nothing about when or how the State of the Union should be delivered. It only requires the president to periodically give Congress information about the condition of the nation and recommend any measures that he believes are necessary and urgent. Bill Clinton delivered the longest State of the Union speech. It was his final State of the Union and lasted about an hour and a half. (Source: globalcitizen.org)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.