Keep up to date with this pivotal week in economic events, featuring the FOMC meeting, NFP and JOLTs data releases. Additionally, tech giants like Microsoft and Google are set to report their quarterly earnings. Read on for more
Busy Week for Economic Events: FOMC, NFP & JOLTs
Before the outcome of tomorrow's Federal Open Market Committee meeting and Friday's Non-Farm Payroll release, today brings us the first key labor market data: the JOLT's Job Vacancies figure.
Investors are carefully monitoring labor market trends, as any indication of a loosening labor situation – such as fewer jobs being created or a rising unemployment rate – would be a clear signal that the Federal Reserve might start easing monetary policy, including cutting interest rates.
Mega Market-Cap Companies Report Today – Microsoft and Google
On the other hand, another event that is capturing the attention of investors is earnings season.
Today, two major large-cap technology companies will announce their earnings for the last quarter of 2023. Their performance is expected to significantly impact North American stock indices, particularly the S&P 500 and the Nasdaq 100.
Microsoft Inc. is expected to report revenues of $52.9B and earnings per share (EPS) of $2.29. Although lower than the previous quarter, these forecasts have not been an obstacle for the company to reach historical highs day by day and exceed the capitalization of 3 trillion dollars, already above Apple Inc. Developments in the field of Artificial Intelligence are one of the factors that are driving the value of Microsoft at this time.
Microsoft daily chart, January 29, 2024. Source: CAPEX.com WebTrader.
The other big company that will release its results today is Alphabet Inc. (Google). The analysts forecast is $85.2B in revenue and $1.59 in earnings per share (EPS). In this case, the forecast for both revenue and EPS is higher than the previous quarter. Alphabet stock also experienced extraordinarily bullish momentum reaching a new all-time high last week.
The other big event for publishing corporate results will be on Thursday, February 1st when the quarterly earnings of Apple and Amazon will be announced.
Quarterly Earnings Watch:
- Microsoft (MSFT) - Tuesday, 30th
- Forecast: 52.9B Revenue, $2.29 EPS
- Google (GOOG) - Tuesday, 30th
- Forecast: 85.2B Revenue, $1.59 EPS
- Mastercard (MA) - Wednesday, 31st
- Apple (AAPL) - Thursday, 1st
- Amazon (AMZN) - Thursday, 1st
- Exxon-Mobil (XOM) - Friday, 2nd
- Chevron (CVX) - Friday, 2nd
US Treasury Borrowing Drops Showing a Healthy Economic Recovery
Near the end of the session, the US Treasury yesterday said it plans to borrow $760 billion this quarter, down from its estimate of $816 billion in October. That's a significant difference. Treasury finances are healthier than expected. This can mean lower interest rates and is a boost for the stock market. The North American stock indices rose sharply after the news was announced and the DowJones30 and S&P500 once again set new all-time highs.
Key Takeaways
- The JOLTs Job Vacancies figure is set to be released today giving key data on unemployment and in-turn US economic health and interest rates.
- FOMC and NFP are also scheduled for this week.
- Investors are eager for big tech companies Microsoft and Google to report today.
- Other notable companies are reporting late this week, or early next week.
- US Treasury borrowing plans drop to $760B from the previously expected $816B.
Sources: Bloomberg, Reuters
