Market Outlook for the Week

Key Takeaways

• Markets are taking a snooze on Monday for Presidents Day, tipping their hats to past bigwigs like George Washington and Abraham Lincoln. It's a chance to kick back, ponder the past, and gear up for Tuesday's market shenanigans, which might be as wild as a roller coaster thanks to news that brewed over the holiday.

• This week, the spotlight's on some heavyweight earnings reports. Walmart, the retail world's crystal ball, will spill the beans, while U.S.-traded Chinese e-commerce giants like Alibaba and Baidu will give us the lowdown on the global e-commerce scene. Carvana's earnings will rev up the automotive chatter, and Rivian will keep us on the edge of our seats with updates on its EV production and financial fitness.

• The week is also jam-packed with economic tea leaves to read. The Federal Reserve will drop its meeting minutes and speeches, giving us a peek into the monetary crystal ball, while housing, manufacturing data, and consumer sentiment reports will paint a picture of economic vibes and growth potential.

The stock and bond markets are taking a nap on Monday for Presidents Day. Even the markets need a day off to celebrate George Washington's birthday, right?

This week, all eyes are on Walmart (WMT) as it gears up to spill the beans on its earnings. Meanwhile, Chinese e-commerce wizards Alibaba (BABA) and Baidu (BIDU) are ready to reveal their financial secrets, alongside Carvana (CVNA), the used-car matchmaker, and Rivian Automotive (RIVN), the electric chariot creator.

Investors are on the edge of their seats waiting for the juicy details from the January Federal Open Market Committee (FOMC) meeting minutes. The Federal Reserve's week includes speeches from Philadelphia Fed President Patrick Harker and San Francisco Fed President Mary Daly, who might just drop some financial wisdom.

Prepare yourself for a parade of housing indicators, manufacturing data, and consumer sentiment gossip this week.

Monday, Feb. 17

• Stock and bond markets are snoozing for Presidents Day

• Philadelphia Fed President Harker will share his thoughts

• UFP Industries (UFPI) plans to unveil its earnings

Tuesday, Feb. 18

• Empire State Manufacturing survey (February) — because New York always has something to say

• Homebuilder confidence index (February) — are they feeling confident or just bluffing?

• San Francisco Fed President Mary Daly will enlighten us with her remarks

• Arista Networks (ANET), Medtronic (MDT), Cadence Design Systems (CDNS), Occidental Petroleum (OXY), and Baidu are ready to share their earnings tales

Wednesday, Feb. 19

• Housing starts/Building permits (January) — who’s building what?

• Federal Open Market Committee (FOMC) January meeting minutes — the inside scoop from the Fed

• HSBC Holdings (HSBC), Analog Devices (ADI), Carvana, Manulife Financial (MFC), and Garmin (GRMN) have earnings stories to tell

• Apple (AAPL) is throwing a product launch party

Thursday, Feb. 20

• Initial jobless claims (Week ending Feb. 15) — who’s taking a break from work?

• Philadelphia Fed manufacturing survey (February) — what’s cooking in the factories?

• U.S. leading economic indicators (January) — leading us where, exactly?

• Chicago Fed President Austan Goolsbee and St. Louis Fed President Alberto Musalem will share their pearls of wisdom

• Walmart, Alibaba, Southern Co. (SO), Block (XYZ), Rivian, and Live Nation Entertainment (LYV) are ready to spill the earnings beans

Friday, Feb. 21

• S&P flash U.S. Purchasing Managers' Index (PMI) (February) — a quick peek at the economy

• Consumer sentiment (final) (February) — are we feeling optimistic or just meh?

• Existing home sales (January) — who’s buying and selling?

• United States Cellular (USM) is set to reveal its earnings

Holiday-Shortened Week Features FOMC Minutes, Fed Representatives' Remarks, Housing Data

The stock and bond markets are on a holiday break Monday for Presidents Day. Time to celebrate with cherry pie and powdered wigs!

On Wednesday, the Federal Reserve's January meeting minutes will be released, offering a peek into the minds of the rate-setting wizards. Who knows what magical insights we'll uncover?

After Fed Chair Jerome Powell’s testimony to Congress last week, other Fed bigwigs like Philadelphia Fed President Patrick Harker, San Francisco Fed President Mary Daly, Chicago Fed President Austan Goolsbee, and St. Louis Fed President Alberto Musalem are set to share their thoughts. Get your popcorn ready!

Housing market data is rolling in, with January's existing home sales, which hit a 30-year low in late 2024. The homebuilder confidence survey on Tuesday comes amidst whispers of construction excitement for 2025. Wednesday's housing starts data will reveal the pace of building action.

The final February survey on consumer sentiment will be released, following earlier inflation-induced jitters. Is the glass half full or half empty?

Investors are also eagerly awaiting regional manufacturing surveys, preliminary Purchasing Managers’ Index results for February, and weekly jobless claims data. It's a week of numbers and surprises!

Walmart, Chinese E-Commerce Firms Highlight Corporate Calendar This Week

Walmart is set to report earnings on Thursday, hoping to keep riding the wave of success after its last report wowed analysts with revenue and earnings. E-commerce revenue jumped 27%, and advertising revenue soared 28%. Meanwhile, Amazon (AMZN) is still recovering from a less-than-stellar sales forecast.

Alibaba, the U.S.-traded Chinese e-commerce giant, is ready to reveal its quarterly results, amidst whispers of a collaboration with Apple to boost iPhone smarts in China. The last quarter saw a profit surprise, but sales were a bit shy. Baidu, the internet search maestro, is expected to report on Tuesday.

HSBC Holdings is scheduled to report on Wednesday, following a report of 5% revenue growth and plans for a $3 billion stock buyback. British banks know how to make an entrance!

Arista Networks will report on Tuesday, after posting impressive earnings last quarter but facing a dip in gross margins. Stay tuned!

Cadence Design Systems is set to share its earnings after raising its full-year outlook thanks to a 19% revenue boost last quarter. Analog Devices, the semiconductor star, is also on this week's earnings stage.

Carvana, the online used-car seller, is ready to share its earnings, despite short-seller Hindenburg Research dubbing its 2024 turnaround a "mirage" due to mysterious subprime loan sales. Meanwhile, EV maker Rivian is set to report on Thursday. Buckle up!