The major averages rebounded this week: The S&P 500 closed 1.8% higher, the Dow Jones Industrial edged up 0.3% and the tech-heavy Nasdaq gained more than 3% this week. The gains came despite a slightly hotter-than-expected consumer price index release on Thursday. The main index was up 3.4% versus expectations of 3.2%, and the core index was up 3.9% year-on-year versus expectations of 3.8%. As we noted in our analysis, we are not overly concerned as the trend at the level of the core index – which excludes volatile food and energy prices and is the Federal Reserve's preferred inflation indicator – continues to be towards disinflation. Additionally, we also see continued disinflation in the Shelter Index, inflation's biggest pain point, putting upward pressure on prices. On Friday, the producer price index fell short of expectations, potentially pointing to further CPI disinflation in the coming months. An increase in PPI can ultimately lead to an increase in CPI as companies try to pass on higher costs. We've finally begun fourth quarter earnings season. Club name Wells Fargo reported on Friday, and while the results were a little mixed, we found they were better than expected after accounting for one-time expense items. Still, shares of Wells Fargo fell more than 3% as the bank warned that net interest income (NII) for 2024 could be lower year-over-year. Next week brings some important economic updates as well as an increase in earnings releases. Inside the club we'll hear from Morgan Stanley before the opening bell on Tuesday. Markets will be closed Monday for Martin Luther King Jr. Day. 1. Consumer Health. Economists expect retail sales to rise a seasonally adjusted 0.4% per month in December, it was announced on Wednesday. The report does not carry as much weight as the Consumer Price Index or personal spending reports, but provides more detailed information about how the consumer is doing and where they are spending. It is important: private consumption accounts for almost 70% of GDP. 2. Real estate inflation. As explained in the CPI analysis, the housing market is one of the main causes of persistent inflation. Therefore, the December reports on housing starts (Thursday) and existing property sales (Friday) will be closely monitored in order to obtain indications of the future development of property prices. Aside from the pricing data, supply levels will be key as supply constraints have been a key factor in supporting property prices. 3. Morgan Stanley reports. It wasn't a particularly good result last time, as Morgan Stanley's third-quarter results in its investment banking and asset management divisions came in weaker than Street estimates. Net new money inflows in the quarter were also a disappointment. We expect a rebound when the company reports on Tuesday, including signs that asset management pressures from clients seeking higher-yielding alternatives – a key driver of weakness in net interest income last quarter – are easing. Wall Street also expects institutional securities revenue to rise year-over-year for the first time since the third quarter of 2021. Outside of the numbers, we're interested to hear what management sees on the deal front. A rebound in IPOs and merger activity will be a key driver of further upside in 2024. Monday, January 15 Markets close for Martin Luther King Jr. Day Tuesday, January 16 Before the bell: Morgan Stanley (MS), Goldman Sachs Group, Inc. (GS), Applied Digital Corporation (APLD), PNC Financial Services Group , Inc. (PNC), Mercantile Bank Corporation (MBWM), FB Financial Corporation (FBK), Guaranty Bancshares, Inc. (GNTY) After the bell: Interactive Brokers Group Inc (IBKR), Calavo Growers Inc. (CVGW), Hancock Whitney Corporation (HWC), Progress Software Corp. (PRGS), Pinnacle Financial Partners, Inc (PNFP), Fulton Financial Corp. (FULT) Wednesday, January 17, 8:30 a.m. ET: Retail Sales Before the Bell: Charles Schwab Corp. (SCHW), Prologis, Inc. (PLD), US Bancorp (USB), Citizens Financial Group Inc (CFG) After the Bell: Alcoa, Inc. (AA), Discover Financial Services (DFS), Wintrust Financial Corp. (WTFC), Kinder Morgan, Inc. (KMI), Synovus Financial Corp. (SNV), HB Fuller Company (FUL), NVE Corp. (NVEC). ) Thursday, January 18 8:30 a.m. ET: Construction Begins 8:30 a.m. ET: Initial Jobless Claims Before the Bell: Texas Capital Bancshares, Inc. (TCBI), Fastenal Co. (FAST), Truist Financial Corporation (TFC), M & T Bank Corp (MTB), First Horizon National Corp (FHN), KeyCorp (KEY), Northern Trust Corporation (NTRS), Home BancShares Inc. (HOMB), Insteel Industries Inc. (IIIN), WNS Holdings Limited (WNS ). ) After the bell: PPG Industries, Inc. (PPG), JB Hunt Transport Services, Inc. (JBHT), Bank OZK (OZK), Banner Corporation (BANR), FNB Corporation (FNB), OceanFirst Financial Corp. (OCFC) , Independent Bank Corp. (INDB), Metropolitan Bank Holding Corp. (MCB), Aspen Group, Inc. (ASPU) Friday, January 19, 10:00 a.m. ET: Existing Home Sales Before the Bell: SLB (SLB), Fifth Third Bancorp (FITB), Ally Financial (ALLY), Huntington Bancshares Incorporated (HBAN), Travelers Companies, Inc. (TRV), Comerica, Inc. (CMA), State Street Corp. (STT), Regions Financial Corporation (RF) ( A complete list of Jim Cramer's Charitable Trust stocks can be found here. As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation's portfolio. If Jim has discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTING CLUB -INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. NO SPECIFIC RESULTS OR PROFITS EXIST BY OBTAINING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB GUARANTEED.
Morgan Stanley's headquarters is seen in New York City on January 17, 2023.
Michael M. Santiago | Getty Images
The major averages rebounded this week: The S&P 500 closed 1.8% higher, the Dow Jones Industrial edged up 0.3% and the tech-heavy Nasdaq gained more than 3% this week.
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