The Day Ahead

U.S. Economic Front:
- January employment report expected Friday (nonfarm payrolls, private payrolls, unemployment rate, average hourly earnings).
- December Job Openings and Labor Turnover Survey (JOLTS) on Tuesday.
- ADP National Employment Report, S&P Global composite and services PMI, and ISM non-manufacturing PMI on Wednesday.
- Initial and continuing jobless claims on Thursday.
- University of Michigan’s preliminary Consumer Sentiment Index for February expected to slip.
Earnings Reports (U.S. Companies):
- Alphabet and Amazon (Q4 earnings) on Wednesday and Thursday.
- Pfizer and Merck (Q4 results, 2026 guidance, COVID revenue, drug pricing) on Tuesday.
- Eli Lilly (Q4 results, weight-loss pipeline, Alzheimer’s, drug pricing) on Wednesday.
- Bristol Myers Squibb (Q4 results, Opdivo, Eliquis) on Thursday.
- AbbVie (Q4 results, Skyrizi, Rinvoq, Humira sales) on Wednesday.

President Trump selected former Federal Reserve Governor Kevin Warsh to lead the U.S. central bank.
Exxon Mobil Q4 earnings beat targets, driven by record high oil production in Permian and Guyana.
Chevron Q4 profit exceeded estimates, focused on cost-cutting despite lower crude prices.
American Express forecasted strong 2026 profit due to affluent customer spending.
Verizon projected upbeat annual profit and free cash flow following significant wireless subscriber growth.

Wall Street declined, reacting to Kevin Warsh's perceived hawkish nomination for Fed chair.
Long-dated Treasury yields increased.
Gold weakened significantly, while the dollar gained strength.
Brent crude prices dipped amid U.S.-Iran tensions.

Investors gain some Fed clarity with Warsh choice, but mull rate path: Warsh’s hawkish stance creates uncertainty regarding future interest rate policy under a Trump administration.
In the fight for early payouts from bankrupt Saks, big luxury brands have the edge: Major luxury brands are leveraging influence for favorable creditor terms from bankrupt Saks Global.

Trump's Fed chair pick Warsh likely to boost Wall St rule easing: Warsh’s appointment is expected to facilitate easing of bank regulations.
US producer prices post biggest gain in five months, businesses passing on tariffs: December saw the largest increase in producer prices in five months, suggesting potential inflation and stable Fed rates.
Odds of US government shutdown rise after funding deal stalls in Senate: A partial U.S. government shutdown became more likely due to legislative gridlock.
Wall Street Week Ahead-Heavy earnings week, jobs data to test US stocks after Microsoft swoon: Upcoming corporate earnings and jobs data will challenge U.S. stock market performance.
GRAPHIC-Take Five: Our currency, your problem: The dollar is experiencing its worst start to the year since 2018, with catalysts ahead that could further impact currency markets.

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