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 investors need to start their trading day:
1. Go back
Welcome back from the holiday weekend. It’s only been two weeks, but 2023 has been kind to stocks. The Dow index rose 3.5%, the S&P 500 rose 4.2%, and the Nasdaq, the worst performer of 2022, rose 5.9%. While the Federal Reserve is sticking to its plan to keep raising rates to keep inflation down, recent data shows consumer prices cooling despite the labor market remaining firm. As investors wait for the Fed’s next interest rate decision, on February 1st, they will process the first wave of quarterly earnings reports. Several major banks reported as of Friday Delta Airlines. Tuesday brings more banks before the bell (see below) and United Airlines after the close. Procter and Gamble and Netflix report Thursday. Read live market updates here.
2. Eyes on Goldman
David Solomon, chief executive officer of Goldman Sachs Group Inc., during Bloomberg Television at the Goldman Sachs Financial Services Conference on Tuesday, Dec. 6, 2022, in New York City, U.S.
Michael Nagle | Bloomberg | Getty Images
Investment banking at JPMorgan Chase and Citigroup didn’t look great in the fourth quarter, so now Wall Street looks like this Goldman Sachs for absorbing that segment of the banking industry. Goldman, which reported earnings on Tuesday morning, reported lower-than-expected profit and revenue for the quarter, with investment banking a big culprit. “Our clear near-term focus is to realize the benefits of our strategic restructuring, which will strengthen our core business, expand our development platforms and improve efficiency,” CEO David Solomon said in an earnings release. Morgan Stanley also informed.
3. China’s population is decreasing
Commuters at a subway station in Shanghai, China, Monday, Oct. 10, 2022.
Qilai Shen | Bloomberg | Getty Images
China’s population shrank last year for the first time since the 1960s. According to China’s National Bureau of Statistics, mainland China’s population fell by 850,000 to 1.41 billion, with 9.56 million births and 10.41 million deaths. The update comes days after China said 60,000 people, mostly senior citizens, have died from the coronavirus since early December as it eases the country’s “zero Covid” policy. Although China reported stronger-than-expected GDP growth for 2022, the latest population figures suggest that concerns about demand in the country may persist for years. China is also on the verge of losing its title as the world’s most populous country, with India right behind it.
4. Automotive industry forecasts
Ford workers build the electric F-150 Lightning pickup at the automaker’s Ford Rouge Electric Vehicle Center (REVC) on December 13, 2022.
Michael Wayland | CNBC
Here’s something for investors to “cut and hold” for this year: 10 predictions for the auto industry from Cox Automotive. We won’t give too much away here, but if you follow the business, you can get a good idea of where the predictions are already pointing. Expect some trends to continue this year, although others, especially when it comes to the supply chain, are the opposite. “We’re replacing a supply problem with a demand problem,” said Jonathan Smoke, chief economist at Cox.
5. Wine and dine in Davos
Members of the US Congress delegation attending the World Economic Forum in Davos, Switzerland
Brian Schwartz | CNBC
The World Economic Forum in Davos, Switzerland kicked off earlier this week, and power brokers from the political and corporate world wasted no time getting together. CNBC’s Brian Schwartz and Hugh Son report that business-friendly Sens. Joe Manchin, DW.Va., Chris Coons, D-Del. and Kyrsten Sinema, I-Ariz., along with several House members and Georgia’s GOP Gov. Brian Kemp, dined with dozens of businessmen at the posh Hotel Schatzalp on Monday. Coons told CNBC that about 50 CEOs will be at the dinner, but did not name any of them. CNBC confirmed that Hewlett-Packard Enterprise CEO Antonio Neri and World Economic Forum Executive Chairman Klaus Schwab were also in attendance.
– CNBC’s Alex Harring, Hugh Son, Evelyn Cheng, Michael Wayland and Brian Schwartz contributed to this report.
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