Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


World Week Ahead: Eyes on earnings

World Week Ahead: Eyes on earnings

Jan. 13 (BusinessDesk) – After December’s surprisingly weak jobs data took some of the shine off the US economic recovery, investors will be analysing this week’s wave of corporate results for reassurance that better days lie ahead.

JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs, General Electric, Intel and UnitedHealth are among companies reporting quarterly results this week.

"The market increasingly will be looking at top line revenue growth, and it wants to see expansion in the top line," Quincy Krosby, market strategist for Prudential Financial, which is based in Newark, New Jersey, told Reuters.

Friday’s Labor Department report showed a 74,000 increase in payrolls in December, far less than the 197,000 expected and well below the revised 241,000 gain in November. The unemployment rate fell to 6.7 percent, the lowest in more than five years, as many people simply stopped looking for work.

Earlier in the week, both ADP employment and weekly jobless claims data had shown a further strengthening in the pace of corporate hiring. Even so, the upside of Friday’s report was that the Federal Reserve might temper further easing of its monthly bond-buying program, reduced to US$75 billion this month, from US$85 billion previously.

“If these numbers don’t get revised upward, it will keep the Fed careful about wanting to taper too quickly,” Quincy Krosby, a market strategist for Newark, New Jersey-based Prudential Financial, told Bloomberg News.

However, some Fed officials on Friday said the report won’t alter their view or the pace of cutting stimulus.

“I would be disinclined to react to one month's number," St Louis Fed President James Bullard told reporters after speaking at an Indiana bankers event, Reuters reported. "For now we're on a program where we're likely to continue to taper [asset purchases] at subsequent meetings."

Richmond Fed President Jeffrey Lacker agreed.

"It takes a lot more than one labour market report to be convincing that the trend has shifted," Lacker told reporters after a speech to a business group in Raleigh. "I would expect a similar reduction in pace to be discussed at the upcoming meeting."

The next two-day FOMC meeting starts on Jan. 28.

Several Fed officials will share their views in the coming days. Among them is Ben Bernanke whose term as chairman expires on Jan. 31; he is scheduled to discuss challenges facing central banks, in Washington on Thursday.

First though, Atlanta Fed President Dennis Lockhart will talk on the economic outlook in Atlanta, on Monday, followed by Philadelphia Fed's Charles Plosser discussing the same topic in Philadelphia on Tuesday.

Also on Tuesday, Dallas Fed President Richard Fisher will speak on the US and regional outlook in Dallas, while San Francisco Fed President John Williams will talk about lessons from the Great Recession in Washington on Thursday.

It is also a busy week with economic data, including the NFIB small business optimism index, retail sales, import and export prices, and business inventories, due on Tuesday; producer price index, Empire State manufacturing survey, and Atlanta Fed business inflation expectations, due Wednesday; consumer price index, jobless claims, Philadelphia Fed survey, housing market index, due Thursday; and on Friday, housing starts, industrial production, and consumer sentiment.

Last week, the Standard & Poor’s 500 Index gained 0.6 percent, while the Nasdaq Composite Index climbed 1 percent. The Dow Jones Industrial Average fell 0.2 percent.

In Europe, the Stoxx 600 Index increased 0.7 percent last week. The UK’s FTSE 100 added 0.1 percent, as did France’s CAC 40, while Germany’s DAX rose 0.4 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news