Fed FOMC minutes and Walmart results will be the center of attention during the shortened trading week ahead. Analog Devices is heading toward profits, with analysts expecting a strong EPS increase of 41% and sales growth of 28%. Walmart faces the risk of a “price set for perfection” as it prepares to release its report.
Stocks on Wall Street ended little changed Friday as markets priced in weaker-than-expected inflation data that kept the Federal Reserve on track to cut interest rates this year.
Source: Investing.com
The major averages all posted declines for the week, as fears of AI disruption reverberate beyond software stocks and hit sectors such as brokerages, commercial real estate firms and logistics names.
The benchmark index fell 1.4% to record its second consecutive week of decline, the 30-stock stock lost 1.2%, while the Nasdaq Composite fell 2.1%. The tech-heavy index has fallen for five straight weeks, its longest losing streak since May 2022.
The upcoming holiday shortened week is expected to be eventful as investors continue to assess the outlook for the economy, interest rates and inflation. US markets will be closed on Monday for Presidents Day.
In a weak data week, most of the focus will be on the Federal Reserve’s January FOMC meeting minutes. This could provide insight into future interest rate developments. Friday will also be key, as it will see the release of the latest reading of the Core PCE Price Index.
Source: Investing.com
As of Sunday morning, traders anticipate two 25 basis point rate cuts by the end of 2026, with about a 50% chance of one more cut, according to Investing.com.
Elsewhere, when it comes to corporate earnings, earnings will be the key update of the week as earnings season draws to a close. Besides WMT, quarterly results from Deere, Palo Alto Networks and Toll Brothers are also expected in the coming week.
Investors are also waiting for the U.S. Supreme Court to rule Friday on the legality of global tariffs imposed by President Donald Trump.
Regardless of which way the market is headed, I’m highlighting a stock that’s likely to be in demand below…
..
