A week to remember
Three trends in the stock market are expected to propel equities higher in 2024, according to Wall Street strategists. Although we’re barely a month into the year, this week’s events could have a significant impact on the market’s direction for the remainder of the year. Investors will have plenty of data to digest with Big Tech earnings, a Federal Reserve meeting, and the release of the January jobs report. On Tuesday, Microsoft and Alphabet will report earnings, followed by Amazon and Apple on Thursday. These four tech giants collectively represent close to $10 trillion in market capitalization. As for the Fed meeting on Wednesday, rate cuts are not anticipated, but investors will eagerly await clues about the central bank’s future plans from Jerome Powell’s speech. The week will conclude with the release of the jobs report, which will provide insight into whether the economy is cooling or strong enough to delay any potential rate cuts. All of this information overload comes at a time of uncertainty for Big Tech and the broader stock market.
A mixed bag for Big Tech
The S&P 500 has seen a modest 3% gain so far this year, and even market experts who predicted a stellar 2024 are cautious about the short-term outlook. The performance of the “Magnificent Seven” tech companies – Apple, Microsoft, Amazon, Alphabet, Nvidia, Meta Platforms, and Tesla – is a crucial part of the equation. These companies accounted for over 60% of the S&P 500’s 25% gain in 2023. While Nvidia has seen a significant increase in value this year, Tesla has suffered a considerable decline after disappointing earnings. Other members of the group are also dealing with their own challenges, such as Apple’s impending product launch and Google’s internal disputes. However, it’s important not to solely focus on these seven companies. Analysts like Tom Lee from Fundstrat believe that stocks outside of this group could perform well, while Amundi expects the Magnificent Seven to underperform. Despite the uncertainties, some remain positive about the Federal Reserve’s ability to achieve a soft landing.
Leadership shuffle at major US bank
The biggest US bank has undertaken a leadership shuffle, providing hints about succession plans and how the bank views the eventual replacement for Jamie Dimon. Jennifer Piepszak, Marianne Lake, and Troy Rohrbaugh have assumed new roles with implications for the bank’s future.
Billionaire Jeffrey Gundlach’s market outlook
Billionaire investor Jeffrey Gundlach predicts a bumpy ride for the markets, forecasting an imminent recession. He advises holding onto cash for now and suggests that markets like India and Japan offer the most value.
Economist Mohamed El-Erian’s concerns
Noted economist Mohamed El-Erian expresses concerns about a soft landing, citing headwinds such as a slowdown in consumer spending and persistent inflation. He believes there is a risk of growth slowing to the one to one and a half percent level.
Prime Video introduces ads
Starting today, Prime Video viewers will encounter ads during their favorite shows, potentially reshaping the market and boosting Amazon’s revenue by billions, while challenging traditional players like Comcast and Warner Bros. Discovery.
Healthcare startups eyeing IPO
Several healthcare startups, including Lyra Health and Maven, are poised to go public once the IPO market reopens. While opinions differ on when that may happen, these startups are preparing for the opportunity.
Newegg enters the refurbished tech market
Online retailer Newegg now offers refurbished iPhones, MacBooks, and other products, posing competition for Apple in the preowned devices market.
Liquidators take control of assets as company faces huge debts
With debts totaling $300 billion, liquidators have taken over control of a company’s assets to prepare for their sale. However, experts believe there may be little to recover from this process.
Americans focused on specific price changes
Economic data remains largely unchanged from six months ago, but Americans feel better due to lower prices of eggs and gas, coupled with a booming stock market.
Boeing’s 737 Max crisis impacting the US economy
The fallout from the recent Alaska Airlines incident involving the Boeing 737 Max aircraft could lead to a shortage of planes for airlines, affecting commercial flights and supply chains, according to aviation experts.