Stocks got the week off to a mixed start, marked by losses for a number of big tech names. However, the futures were indicating that the major indexes might pick up some lost ground at today’s opening bell. In overnight trading, stocks in Asia ended their session lower. Meanwhile, markets in Europe were showing modest gains.
Although earnings season is winding down, there are a couple of key releases due out this week. Topping the list is NVIDIA (NVDA), which has soared to fame over the last couple of years thanks to its chips being instrumental in the rise of artificial intelligence (AI). Since topping the three-trillion-dollar mark for market cap, the issue has become one of the bellwethers for the tech sector in general and AI specifically. Its report is scheduled to be released after the market closes on Wednesday. That same day, we’ll also hear from Salesforce Inc. (CRM) and Lowe’s (LOW), followed by Dell Technologies (DELL) on Thursday.
Turning to the economic calendar for this week, tomorrow we’ll get the latest numbers on new home sales from the Census Bureau. Wall Street is calling for a dip in January, to 677,000 units, down from 698,000 in December.
On Thursday, we’ll get another read on the housing market from the National Association of Realtors, with its report on pending home sales for last month. Expectations are calling for the month-over-month figures to show a dip of 1.3% in January, compared to a 5.5% decline recorded for December.
Additionally, on Thursday, the Census Bureau will release its report on durable goods orders for January. Analysts are leaning toward a month-over-month increase of 0.4%, up from 0.3% in December. Also that day, the Department of Labor will release the latest tallies for initial jobless claims. Consensus estimates are looking for a slight uptick, to 220,000, compared to 219,000 the week before.
The week wraps up with the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index from the Department of Commerce. The consensus is looking for a flat month-to-month increase of 0.3% for January, while the 12-month figure is pegged to show a small dip, to 2.4%, versus 2.6% in December. The so-called “core” figures (which exclude food and energy) are projected to come in around 0.3% for the month (up from 0.2%) and 2.6% for the year (down from 2.8%).
Summing up Monday’s price moves for the major indexes, the Dow Jones Industrials inched higher by 33 points, or 0.1%, the S&P 500 fell 29 points (0.5%), and the tech-heavy NASDAQ lost 237 points (1.2%). – Mario Ferro
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
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