• Weekly Market Outlook

    From Federal Reserve and European Central Bank interest rate decisions, to the jobs report, and the peak of quarterly earnings reports, I’m Jeff Kleintop with 90 seconds of what you need to know for the week ahead.

    The Fed will announce its latest decision on Wednesday. Nearly everyone expects a one and done 25 basis point hike, taking the upper bound of the funds rate to 5.25% and marking the end of the tightening cycle. But with inflation still running at more than double the Fed’s 2% target, there’s abundant reason for the Fed to leave rates there for a while, despite stress among some banks. And a day later on Thursday, the European Central Bank is also expected to hike by 25 basis points. But the hike probably won’t mark the end of the cycle. Upside surprises in the Eurozone inflation and bank lending data, due two days before the ECB decision, could even bring another 50 basis point hike into play.

    On Friday, both Canada and the US report the April employment numbers. In the U.S., the April jobs data is expected to show a slowdown in the pace of hiring, but not enough to get inflation back to target. Economists anticipate a payroll gain of about 180,000, which is less than the prior month’s 236,000. The unemployment rate seen holding at 3.5%. Now it’s the peak week for earnings reports for the 162 S&P 500 companies expected to report and 156 companies in Europe’s Stoxx 600 index. Overall earnings are coming in better than expected, even more so than in prior quarters.

  • Weekly Market Outlook

    From GDP reports, to the Fed’s preferred wage and inflation measures, to tech earnings, this is Jeff Kleintop with 90 seconds on what you need to know for the week ahead.

    Last week, we got through a big week for Financials’ earnings, which showed overall growth in profits and the stocks added to their gains and are now the 2nd best performing sector in April. This week, we hear from many big tech companies and analysts who are expecting a big decline in tech profits – double-digits this quarter – one of the biggest declines in decades, as businesses curb spending and face higher borrowing costs. Any earnings misses on already-revised down estimates could weigh on the sector, which is among the worst performers in April. In the US, the Fed’s favored measure of inflation, the PCE deflator, on Friday will probably tell a similar story to CPI. Falling energy prices and slower rental inflation may mean a deceleration in the headline reading, but core inflation is likely to remain elevated. And that, combined with a firm Employment Cost Index report, means this week’s data will probably make it even more likely the Fed will hike by 25 basis points at the early-May meeting. Like the US GDP data this week, the Eurozone GDP figures are likely to show the economy grew in the first quarter. And that comes despite worries entering the quarter of a potential energy price shock-induced recession. Europe’s stocks have been outperforming the US so far this year on better-than-expected growth, but a resilient economy means underlying inflation may stay higher for longer. We get April CPI data for Germany, France, and Spain, which may add to the pressure on the European Central Bank to carry on hiking rates.

  • Weekly Market Outlook

    Much anticipated earnings reports from big banks will offer further insights into the health of the banking sector. China’s first quarter GDP data will be released, which is expected to show improvement after they removed the COVID lockdowns in Q4 2022. On Friday, the preliminary purchasing manager’s index (PMI) will be released and should be the first sign of any negative impact from the banking sector turmoil earlier this year.

  • Weekly Market Outlook

    Charles Schwab’s Chief Global Investment Strategist Jeffrey Kleintop covers what could influence the market this week, including two separate meetings between global leaders to “de-risk” Chinese relations, Friday’s jobs report, and the expected final federal reserve bank interest rate hikes in Asia.

  • Weekly Market Outlook

    Chief Global Investment Strategist Jeffrey Kleintop’s 90-second take on the markets for the week ahead.