Wall Street week ahead: Focus on Q4 earnings, income & spending data, Trump speech at WEF amid Greenland dispute

The primary focus on Wall Street during the holiday-shortened week ahead will be on the fourth quarter financial results.

United States equity markets are set to remain shut on Monday, January 19, in observance of the Martin Luther King, Jr. holiday.

Investors will be analyzing earnings statements from streaming leader Netflix, semiconductor giant Intel, healthcare major Johnson & Johnson, and consumer goods firm Procter & Gamble.

Regarding economic indicators, market participants will track figures for November's personal income and outlays, third quarter gross domestic product (GDP) revisions, and the delayed November PCE index.

Furthermore, the financial community will pay close attention to US President Donald Trump’s anticipated address at the World Economic Forum (WEF) in Davos, amidst a diplomatic impasse with European Union (EU) members over the Greenland dispute.

On Saturday, Trump committed to implementing a sequence of rising tariffs on eight EU members — Denmark, Sweden, France, Germany, the Netherlands, and Finland — along with the United Kingdom and Norway.

These measures are intended to persist until the US is allowed to acquire Greenland, further straining the conflict regarding the future of Denmark's extensive Arctic region.

Economic Calendar

On January 19 (Monday), None scheduled, Martin Luther King Jr. holiday

On January 20 (Tuesday), None scheduled

On January 21 (Wednesday), separate reports on construction spending (delayed report) for October and pending home sales for December will be released.

On January 22 (Thursday), separate reports on initial jobless claims for the week ended January 17, GDP (first revision) for Q3, personal income (delayed report) for November, personal spending (delayed report) for November, and PCE index (delayed report) for November will be released.

On January 23 (Friday), separate reports on consumer sentiment (final) for January, S&P flash US services PMI for January, and S&P flash US manufacturing PMI for January will be released.

Q4 Earnings

Following companies are due to report fourth quarter results in the week ahead — Netflix, 3M, United Airlines Holdings, Johnson & Johnson, Kinder Morgan, Halliburton, Intel, GE Aerospace, and Procter & Gamble.

Markets Last Week

US stocks edged a bit lower on Friday as the first week of corporate earnings season closed out with markets trading near record levels.

On Friday, the S&P 500 fell 4.46 points, or 0.1%, to 6,940.01. The Dow Jones Industrial Average fell 83.11 points, or 0.2%, to 49,359.33. The Nasdaq Composite fell 14.63 points, or 0.1%, to 23,515.39.

The Russell 2000 index of smaller companies rose 3.18 points, or 0.1%, to 2,677.74.

For the week, the S&P 500 is down 26.27 points, or 0.4%. The Dow is down 144.74 points, or 0.3%. The Nasdaq is down 155.96 points, or 0.7%. In the bond market, the yield on the 10-year Treasury rose to 4.23% from 4.17%. The 2-year Treasury yield rose to 3.60% from 3.57%.