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GENERAL: All eyes will be on the U.S and China’s decision to sign the phase one trade agreement on Wednesday. Earnings season kicks off as well with financial firms leading the charge. It’s also a relatively busy week ahead on the economic front, with 63 stats to monitor. Below are the major takeaways.
MONDAY: The Federal Budget is due at 2 p.m. Prior to that, Boston Fed President Eric Rosengren and Atlanta Fed President Raphael Bostic deliver speeches on the U.S. economy. In San Francisco, over 450 private and public companies will be attending J.P. Morgan’s annual health-care conference. Keep an eye out for any announcements about the release of new drugs and/or acquisition activity. Last year Bristol-Myers announced it was acquiring Celgene at the conference. David Calhoun officially takes the reins at Boeing today. On Saturday it was reported that Dennis Muilenburg, Boeing’s former CEO, left the company with $80.7 million in pay and benefits, after being fired over two aircraft crashes that killed 346 people in total. For context, his compensation dwarfs the $50 million set aside for families of the crash victims. The College Football Playoff National Championship is tonight. LSU faces off against reigning champions, Clemson.
TUESDAY: Speaking of J.P. Morgan, the company reports fourth-quarter earnings before the market opens today. This week kicks off the start of the corporate earnings season so we will also see reports from Citigroup, Wells Fargo, Delta Air Lines, First Republic Bank, Wipro, and IHS Markit today. Early in the morning, we get the NFIB survey and CPI data. New York Fed President John Williams will be at the London School of Economics and Kansas City Fed President Esther George delivers remarks at 1 p.m. The first debate of this election year is tonight at Drake University in Iowa. Key issues will revolve around US-Iran relations and impeachment.
WEDNESDAY: The earnings train keeps rolling today with reports out from Bank of America, BlackRock, Goldman Sachs, UnitedHealth, US Bancorp, PNC Financial, Alcoa, Eagle Bancorp, and Hancock Whitney. On the economic front, we get PPI and Empire state manufacturing in the morning and the Beige Book in the afternoon. Philadelphia Fed President Patrick Harker and Dallas Fed President Robert Kaplan share their thoughts throughout the day. By far and away the most scrutinized event of the week will be the U.S and China’s decision to sign the phase 1 trade agreement today. The signing is a double-edged sword. On one hand, progress will calm markets, but on the other investors will want to know what’s next. Geopolitical tensions have stolen the spotlight, President Donald Trump is still in the midst of an impeachment trial, and the 2020 Presidential Election season is ramping up. If during all of this both sides press pause on the next steps or drag their feet, global financial markets may get anxious.
THURSDAY: Morgan Stanley, Taiwan Semiconductor, Bank of NY Mellon, Charles Schwab, PPG Industries, HomeBancShares, Bank of the Ozarks, and People’s United Financial are all in the spotlight today with earnings reports. We get a slew of economic data, namely Initial claims, Retail sales, Import prices, the Business leaders survey, Business inventories, NAHB, and TIC to end the day.
FRIDAY: Philadelphia Fed President Patrick Harker kicks off the final day of the week with remarks at 8 a.m. Housing starts are due at 8:30 a.m., then Industrial production, consumer sentiment, and JOLTS. On the chopping block Schlumberger, Citizens Financial, Fastenal, Kansas City Southern, Regions Financial, State Street, and First Horizon all report earnings. The American Farm Bureau conference begins today in Austin. The meeting for the past two years has featured remarks by President Trump. Keep an eye out for another appearance from the President, along with any remarks about the recently signed phase-one trade deal with China. Again, see if he hints at what’s next.
SATURDAY: Nate Boyer, a former Seattle Seahawks player, and US Army Green Beret, will host the 5th Annual Veterans Awards today. The accolades, from the Academy of United States Veterans, are given in categories including leadership, employment, and education. Conor McGregor returns to UFC action tonight where he will face Donald “Cowboy” Cerrone in Las Vegas.