Weekly Outlook:
Cryptocurrency Outlook: Bitcoin's Bullish Run and ETF Speculation
Bitcoin has been on a remarkable run since November, breaking the $45,000 mark for the first time in nearly two years. As the SEC deliberates on the approval of Bitcoin ETFs this week, all eyes are on whether this will catalyze a further spike in demand for the leading cryptocurrency.
Inflation Watch: Anticipating CPI Data
The CPI report due Thursday at 8:30 AM is eagerly awaited by investors monitoring the inflation trajectory. As the Federal Reserve hints at potential rate cuts within the year, the inflation trend could significantly influence the timeline and extent of these adjustments, potentially kicking off as soon as March.
Bank Earnings Spotlight
This week promises to be an eventful one for the banking sector with heavyweights like JPMorgan Chase, Bank of America, Citi, and Wells Fargo scheduled to disclose their earnings on Friday. The financial community is on high alert for insights into the banking industry's health and future outlook.
Market Recap: A Week of Pullbacks
The past trading week saw major indices retreat; the S&P 500 fell by 1.79%, the Dow Jones by 0.62%, and the NASDAQ took a significant hit, dropping 3.81%. Apple's market cap notably shrunk by over $100 billion, largely due to reduced demand from China.
Earnings Watchlist
Keep an eye on the following companies reporting earnings this week:
- Monday: CMC (Basic Materials)
- Tuesday: TLRY (Healthcare)
- Thursday: INFY (Technology)
- Friday: A slew of financial giants including BAC, C, WFC, and JPM, along with DAL (Industrials) and BLK (Financial Services).
- The Fed may reduce rates by 75 basis points in 2024.
- US beer sales are projected to hit a record low since 1999.
- Allegations of tax fraud against Supreme Court Justice Clarence Thomas.
- Anticipation builds around Bitcoin ETF approvals.
- Businesses linked to former President Donald Trump reportedly received substantial foreign payments.
- The US faces unprecedented rates of obesity and diabetes.
U.S Economic Events to Watch
- Monday: Consumer credit report
- Tuesday: Trade deficit data
- Wednesday: Wholesale inventories and remarks from New York Fed President John Williams
- Thursday: A critical day with the release of initial jobless claims, CPI data, and the Federal budget statement
- Friday: Producer Price Index (PPI) data
Wishing everyone a productive and insightful week ahead!