Investors are bracing for a busy week ahead with several corporations reporting earnings along with a Federal Reserve interest rate decision on Wednesday, and a wide variety of economic reports due throughout the week, culminating with the release of the closely watched U.S. non-farm payroll report on Friday.
The overwhelming consensus is that the Federal Reserve won’t be raising interest rates at the conclusion of their 2 day policy meeting which wraps up on Wednesday February 1st.
According to CME’s Fed Watcher tool, there is a 96 percent probability that interest rates with the federal funds will remain unchanged at 0.50-0.75 at the conclusion of the Fed’s monetary policy meeting.
Earnings Due This Week From Apple, Facebook, Amazon
Apple reports their first fiscal quarter earning on Tuesday while Facebook’s earnings occurs on Wednesday.
Amazon’s earnings will come into focus on Thursday.
Based on estimates from Zaks Investment Research and FactSet, the consensus EPS forecast for Apple’s earnings on Tuesday is $3.22 compared to the year ago same quarter when Apple reported $3.28.
FactSet estimates that Apple’s iPhone segment, which remains the largest source of revenue for the Cupertino based company, will show a year over year growth in sales of 3 percent for Q4 2016.
Facebook is expected to be the largest contributor to earnings growth for the S&P 500 Information Technology sector for Q4 2016, according to FactSet which has a current mean EPS of $ 1.30 for Facebook’s 4th quarter calendar earnings on Wednesday compared to year ago actual EPS of $ 0.79.
Busy Economic Calendar Ahead
Besides paying attention to the Federal Reserve’s rate decision on Wednesday at the end of their 2 day monetary policy meeting, investors will also be watching an inflation report due on Monday, PCE, the Fed’s preferred inflation gauge for signs about how strong inflation is across the United States in December during a period of rising crude oil prices.
Pending home sales for December is also due on Monday.
Some of the other economic reports due out this week include Consumer Confidence for December on Tuesday, private sector employment change with ADP on Wednesday in addition to the ISM Index (Jan.) and Construction Spending (Dec.).
Car and Truck Sales for January will also be reported on Wednesday.
Later in the week on Friday, the closely watched U.S. non-farm payroll report is released from the Bureau of Labor Statistics.
Economists from briefing.com have a consensus estimate of 170,000 non-farm payroll jobs were added in January after 156,000 were gained in December.
Factory orders for December and ISM Services for January will also be reported later in the day on Friday.