Jan 15, 2024: Here are key updates on various market developments:
Bank Earnings Anticipation:
Goldman Sachs and Morgan Stanley are set to announce their quarterly results this week, with a focus on how they navigated a period of weakened mergers and acquisitions activity impacting advisory fees.
Recent hopes of a potential Federal Reserve interest rate cut have boosted trading profits for large U.S. banks, contributing to a stock market rally. However, analysts are keen to assess the impact on net interest income amid concerns about a dormant deal pipeline.
The outlook for the U.S. economy remains optimistic, as highlighted by JPMorgan, Bank of America, Wells Fargo, and Citigroup, despite increased provisions for loan defaults.
U.S. Markets Closed for Holiday:
U.S. stock markets will remain closed on Monday for the Martin Luther King Jr. holiday.
In the previous week, the S&P 500 added 0.1%, the Nasdaq Composite was mostly unchanged, and the Dow Jones Industrial Average dipped by 0.3%. Investors were monitoring bank earnings and data showing a monthly decline in U.S. producer prices.
WEF Davos Outlook:
The World Economic Forum’s annual meeting is set to begin, accompanied by a survey indicating uncertainty in the near-term global economic outlook.
Growth prospects for 2024 are perceived as “subdued” by 56% of top economists surveyed, with expectations of weakening conditions. Nearly a quarter anticipate a stronger economy, while 20% predict a stable environment. The survey findings will likely shape discussions at the WEF Davos meeting.
