Tuesday's Market Minute: Cold Weather's Impact On Energy

We’ve got a holiday-shortened week that’s packed full of economic data, earnings, and energy markets on the move. With indices at all-time highs and rates on the rise, let’s look at a few of the focal points for investors and traders in the week ahead. Beginning with economic data, not much to begin the week Tuesday, but Wednesday we get a look at Producer Price Index (PPI), FOMC Minutes, and Retail Sales. Thursday, keep an eye on the EIA inventories, Housing Starts and Building Permits, in addition to the weekly Jobless Claims. Friday, it’s all about E-Commerce Retail Sales, Existing Home Sales, and the PMI Composite Flash. The data this week will provide traders and investors more insight: are strong housing trends here in the U.S. continuing, is inflation still relatively muted, and is the consumer still spending?

We also have a few companies reporting quarterly results this week that should be closely watched, beginning with AutoNation, Inc. AN, Advance Auto Parts, Inc. AAP, and CVS Health Corp CVS. Later in the week, we have Walmart Inc WMT, Deere & Company DE, and Analog Devices, Inc. ADI to keep an eye on. Make sure to watch energy markets; with the cold weather ripping across the U.S., and Texas forced to take measures to ensure the stability of the power grid, Crude Oil and Natural Gas markets will be major focal points for many.

The British Pound has been strong and weighing on the U.S. Dollar Index. Also, keep an eye on rates this week; last week the TYX got up to 2%, and the TNX is back to that 1.2% level. With rates on the rise, they could create a headwind for U.S. indices, which thus far continue to trend higher, and continue to post new all-time highs. Many argue the one thing that could derail the trend up is U.S. rates moving too high too fast. As always, lots to stay dialed in on, and lots of potential market movers this week.

Photo by Alberto Restifo on Unsplash