The season of financial reports on Wall Street is picking up a gear, when this week a host of reports from the major companies will be published that may hint at the consequences of interest rates in the US after a weekend of huge layoffs among the major technology companies.
Tech giant Microsoft will release its financial results on Tuesday before trading opens. Texas Instruments, Verizon, 3M, and Johnson & Johnson will also announce on Tuesday.
On Tuesday, Tesla will issue reports after trading as its stock suffers from sustained negative momentum in the shadow of a slowdown in vehicle deliveries and a production shutdown in Shanghai due to the Chinese New Year. On the same day, the airline Boeing, AT&T, IBM, and the pharmaceutical company Abbott will announce.
Intel, Visa will report after trading, Nokia, American Airlines and MasterCard will report on Wednesday, and American Express will report on Friday along with other companies.
On Thursday, the growth data of the American economy will be published, when the expectation is for a positive figure of 2.6% in the fourth quarter of 2022.
In the last week, fears of an approaching recession in the US increased, which supported the continued decline in yields, against the background of the sharp decline in retail trade and industrial production. Despite this, the number of job seekers fell, and although there was a decline in construction starts, it can be said that it is considered relatively moderate. Bank economists The Hapoalim write in their weekly review that “the economic indicators point to a slowdown in consumption and industry in the US. Retail sales fell by 1.1% in December, a high rate compared to forecasts, and the November figures have been updated downwards. These are mainly sales declines at gas stations as well as furniture and electronics items. In the last 12 months, real retail sales increased at an annual rate of only 0.3%, and in fact throughout the last year they remained unchanged, a worrying indicator for private consumption.
“Industrial production decreased by 0.7% in December, the sharpest decrease since September 2021. The data for the month of November was also updated downwards and the decrease in industrial production in the last quarter of 2022 reached 1.7% in annual terms. The labor market, on the other hand, continues to be in a relatively tight situation, and the number of demands The new weekly claims for unemployment benefits dropped to 190,000, lower than the forecast of 214,000 new claims,” Hapoelim wrote.