Look ahead: Microsoft; AMD; Alphabet; GM; Pfizer; JOLTS
Investors brace for a huge week on Wall Street when earnings from giants including Microsoft, AMD, Alphabet, GM, and Pfizer hand in their report cards. JOLTS data could prove interesting ahead of the US jobs report.
Plus, watch out for economic growth data from France, Germany, and the eurozone.
(AI Video Summary)
Japan, France and Germany ecomonic data
In today's "Look ahead" video, Angeline Ong gives an overview of important economic indicators and upcoming events that could affect trading. She starts by talking about Japan's unemployment rate, which is expected to stay the same in December at 2.5%. In France, the focus is on the GDP growth rate for the last quarter, which is predicted to be relatively stable compared to the previous quarter. However, Germany is likely to see a negative growth rate of 0.3% in the fourth quarter.
Ong then shifts the discussion to the EU stocks 50 index, which has been rising since October but has recently started to level off. The market's direction might change depending on statements made by the Federal Reserve and the Bank of England this week. Although both central banks are expected to keep interest rates the same, it's their comments about future interest rates that could impact the markets.
Chances of Fed rate cuts
Ong also mentions the CME FedWatch Tool, which predicts a 59.7% chance of a Fed rate cut in March. However, strong economic data from the US has caused this percentage to be revised. She also talks about upcoming events, such as the release of job opening figures and consumer confidence data from the US, as well as API crude oil inventories.
Companies to watch
Then, the focus shifts to companies' earnings reports, with Microsoft being one to watch. Microsoft recently became one of the most valuable companies globally, surpassing Apple. They are expected to report a 15.8% increase in quarterly revenue, thanks to the growing adoption of their products infused with generative AI. Ong suggests that if AI becomes more popular, Microsoft is likely to keep leading in this area.
Another company to keep an eye on is AMD, which is projected to report a 9.3% rise in revenues for its fourth quarter earnings. The comments they make about special chips that power AI and their potential impact on increasing production will be particularly interesting.
Ong also highlights upcoming earnings reports from Alphabet, General Motors, and Pfizer. Alphabet is expected to report a 12.1% increase in revenues, and any comments they make about artificial intelligence tools and cloud services will be closely analysed.
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