What to Expect in Markets This Week: January Jobs Report; Earnings From Alphabet, Amazon, AMD, Disney, Palantir

The latest data on the U.S. job market, along with a look at the finances of several top tech, media and pharmaceutical firms, are in store for investors this week.

The jobs report for January comes as Federal Reserve officials are closely watching the labor market for signs of weakness. The central bank kept interest rates on hold last week. 

Investors will also be focused on earnings from several top tech firms, including Amazon and Google parent Alphabet. Reports from AMD, Qualcomm and Palantir are likely to provide insight into the artificial intelligence (AI) industry. Reports from Disney, Uber, Toyota and a slew of pharmaceutical firms are also on tap.

Read to the bottom for our calendar of key events—and one more thing.

Jobs Data Will Highlight the Strength of the Labor Market

The U.S. jobs report for January is due Friday. The labor market in December showed more signs of weakening; while the unemployment rate edged lower at the end of the year, the 50,000 jobs that employers reported adding was lower than economists anticipated.

Federal Reserve officials will be watching the labor market after the central bank voted last week to keep interest rates unchanged, citing elevated inflation risks, even as hiring has slowed. Some Fed officials have said that rates should continue to be lowered to shore up the job market.

Investors will also get a look at consumer sentiment in February, while consumer credit levels and Purchasing Managers Index survey results for the manufacturing and services sector will also be in focus.

Alphabet, Amazon, Disney on Tap for Earnings Reports

Alphabet’s earnings come after the search giant surpassed the $100 billion revenue milestone in its most recent report. Amazon also posted strong revenue gains in the prior quarter. The online retailer recently announced another round of layoffs. 

The report from Advanced Micro Devices comes amid brisk sales of data center chips, fanning bullish sentiment among analysts following the chipmaker. While investors continue to focus on the opportunity offered by the AI trade, some observers are warning of inflated valuations for top tech companies. 

Investors will be watching Disney’s report for more details on its direct-to-consumer segment (including its streaming services), which grew 8% in the prior quarter but came in below expectations. Pharmaceutical firms will also be in focus, including Wednesday’s report from Eli Lilly, which has seen its shares rise on optimism over its weight loss drugs. Rival weight loss drugmaker Novo Nordisk will also report earnings this week, along with Amgen, Merck, AbbVie and Novartis. 

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This Week’s Calendar

Monday, Feb. 2

• ISM manufacturing PMI (January)
• Federal Reserve Official Speaking: Atlanta Fed President Raphael Bostic 
• Key Earnings: Palantir (PLTR), Disney (DIS), Mizuho Financial (MFG)

Tuesday, Feb. 3

• Job openings (December)
• Key Earnings: Advanced Micro Devices (AMD), Merck (MRK), Amgen (AMGN), Pfizer (PFE), PepsiCo (PEP)

Wednesday, Feb. 4

• ADP employment (January)
• Federal Reserve Officials Speaking: Gov. Lisa Cook
• More Data to Watch: ISM services PMI (January)
• Key Earnings: Alphabet (GOOG, GOOGL), Eli Lilly (LLY), AbbVie (ABBV), Novartis (NVS), Novo Nordisk (NVO), Uber Technologies (UBER), Qualcomm (QCOM)

Thursday, Feb. 5

• Initial jobless claims (Week ending Jan. 31)
• Key Earnings: Amazon (AMZN), Philip Morris (PM), Shell (SHEL), ConocoPhillips (COP), Bristol-Myers Squibb (BMY)

Friday, Feb. 6

• U.S. employment report (January)
• More Data to Watch: Consumer sentiment - preliminary (February), Consumer credit
• Key Earnings: Toyota Motors (TM)

One More Thing

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