Top 5 things to watch in markets in the week ahead
Investing.com — Retail sales data and bank earnings will be the highlight of a holiday shortened week as markets await more insights on the health of U.S. consumers. Global leaders gather in Davos, China is to release full year GDP figures and oil prices look set to remain volatile. Here’s what you need to know to start your week.
Wednesday’s U.S retail sales data will be closely watched for indications that consumer spending — a major driver of economic growth — is remaining resilient in the face of elevated interest rates.
The Federal Reserve hiked rates last year in a bid to tame inflation. But with price increases slowing, the potential pace of interest rate cuts this year, and whether the economy will avoid a recession, are the key questions hanging over markets.
Retail sales are expected to have risen 0.4% in December, after a 0.3% increase in November.
Data on housing starts and existing home sales are expected to point to a housing market that’s still struggling in the face of higher borrowing costs.
Investors will also have the chance to hear from several Fed officials including Fed Governor Christoper Waller as well as Atlanta Fed President Raphael Bostic and San Francisco Fed head Mary Daly.
Bank earnings are set to continue with Goldman Sachs (NYSE:GS) and Charles Schwab (NYSE:SCHW) due to report on Tuesday and Wednesday respectively, after a mixed bag of earnings from big lenders on Friday.
Major U.S. banks reported lower profits in a choppy fourth quarter clouded by special charges and job cuts, with signs an income boost from high interest rates is waning and some consumer loans are starting to sour.
Still, the country's largest lenders JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America
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