Monday's Market Minute: Will Tech Strength Continue?

Looks like another busy week for investors and traders with the focus on earnings, the FOMC meeting, U.S. economic data, and U.S. indices holding at or near new all-time highs. First and foremost, with U.S. indices to new all-time highs last week, companies reporting quarterly results this week should be closely watched. We have 120 S&P 500 companies reporting and a few tech names that could move markets; keep an eye on Tesla Inc TSLA, Apple Inc AAPL, Microsoft Corporation MSFT, and Boeing Co BA, to name a few. Last week, the move up was largely led by the Nasdaq and tech strength after NFLX beat expectations; this week we’re seeing somewhat of a mixed start, but it will be interesting to see if tech continues to shine bright.

We also have some closely-watched economic data this week like Durable Goods, GDP, more housing data, weekly Jobless Claims, and the Personal Income and Spending data due out Friday will help provide further insight as to what’s happening on the inflation front. Don’t forget about the Fed meeting this week. Investors and traders will be paying close attention to the two-day meeting, which begins Tuesday. Wednesday afternoon we’ll get their decision on rates and bond purchases, and the Q&A session with Fed Chair Jerome Powell will follow.

Oftentimes the Fed meeting provides for some good market volatility. Keep an eye on the U.S. Dollar and U.S. Treasuries to see how they respond to the news (or lack of); the Fed is expected to leave rates unchanged and purchases as is. In terms of individual markets to watch, I think crude and copper will be key in the coming weeks to determine how the demand narrative is playing out. Last week the EIA reported the first build in inventories for the new year; if that becomes a trend, it would not be a good sign. As always, lots to stay on top of, and lots to keep an eye on this week that could move markets!

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