A trader works on the trading floor at the New York Stock Exchange (NYSE), January 5, 2023.
Andrew Kelly | Reuters
Here are the most important news items that investors need to start their trading day:
1. Back at it
Welcome back from the holiday weekend. It’s only been two weeks, but 2023 has been kind to stocks. The Dow is up 3.5%, the S&P 500 has jumped 4.2%, and the Nasdaq, which had the worst 2022 of the three indices, is up 5.9%. Even though the Federal Reserve has stuck with its plan to keep raising rates to bring inflation down, recent data show consumer prices cooling off, even as the job market remains robust. While investors await the Fed’s next rate decision, on Feb. 1, in the meantime they will be processing the first wave of quarterly earnings reports. Several big banks reported Friday, as did Delta Air Lines. Tuesday brings more banks before the bell (see below) and United Airlines after the close. Procter and Gamble and Netflix report Thursday. Read live markets updates here.
2. Eyes on Goldman
David Solomon, chief executive officer of Goldman Sachs Group Inc., during a Bloomberg Television at the Goldman Sachs Financial Services Conference in New York, US, on Tuesday, Dec. 6, 2022.
Michael Nagle | Bloomberg | Getty Images
Investment banking at JPMorgan Chase and Citigroup didn’t look pretty in the fourth quarter, so now Wall Street looks to Goldman Sachs for its take on that segment of the banking industry. Goldman, which reported earnings Tuesday morning, posted lower-than-expected profit and revenue for the quarter, and investment banking was a big culprit. “Our clear, near term focus is realizing the benefits of our strategic realignment which will strengthen our core businesses, scale our growth platforms and improve efficiency,” CEO David Solomon said in the earnings release. Morgan Stanley also reported.
3. China’s population falls
Commuters at a subway station in Shanghai, China, on Monday, Oct. 10, 2022.
Qilai Shen | Bloomberg | Getty Images
China’s population fell last year for the first time since the 1960s. Mainland China’s population declined by 850,000 to 1.41 billion, China’s National Bureau of Statistics reported, factoring in 9.56 million births and 10.41 million deaths. The update comes days after China reported that 60,000 people, mostly senior citizens, died from the coronavirus since early December, as the country eased its “zero Covid” policy. And while China reported stronger-than-expected GDP growth for 2022, the latest population numbers indicate that concerns about demand in the country could linger for years. China is also on the verge of losing its title of the world’s most populous country, with India right on its heels.
4. Auto industry predictions
Ford workers produce the electric F-150 Lightning pickup on Dec. 13, 2022 at the automaker’s Ford Rouge Electric Vehicle Center (REVC).
Michael Wayland | CNBC
Here’s something for investors to “clip and save” for this year: 10 predictions for the auto industry from Cox Automotive. We won’t give much of it away here, but if you’ve been tracking the business, you might have a good idea where the predictions are pointing already. Expect some trends to persist this year, although others are primed to reverse, particularly when it comes to the supply chain. “We’re swapping a supply problem for a demand problem,” said Cox’s chief economist, Jonathan Smoke.
5. Wining and dining at Davos
Members of the U.S. congressional delegation in Davos, Switzerland for World Economic Forum
Brian Schwartz | CNBC
The World Economic Forum in Davos, Switzerland, kicked off earlier this week, and power brokers from the political and corporate worlds didn’t waste any time getting together. CNBC’s Brian Schwartz and Hugh Son report that business-friendly Sens. Joe Manchin, D-W.Va., Chris Coons, D-Del. and Kyrsten Sinema, I-Ariz., along with several House lawmakers and the GOP governor of Georgia, Brian Kemp, dined with dozens of business leaders Monday at the luxurious Hotel Schatzalp. Coons told CNBC about 50 CEOs would be at the lunch, but didn’t name any of them. CNBC confirmed that Hewlett-Packard Enterprise CEO Antonio Neri attended, as did Klaus Schwab, the executive chairman of the World Economic Forum.
– CNBC’s Alex Harring, Hugh Son, Evelyn Cheng, Michael Wayland and Brian Schwartz contributed to this report.
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