Market Outlook: Key Events to Watch This Week
As the first full week of 2025 gets underway, investors are bracing for a flurry of significant events that could shape the market’s trajectory. The U.S. jobs report and Fed FOMC Meeting minutes will take center stage, while earnings season kicks into high gear.
U.S. Jobs Report: A Crucial Indicator
Friday’s U.S. employment report for December is expected to show the economy added 154,000 positions, with the unemployment rate holding steady at 4.2%. This data will provide valuable insights into the labor market’s health and its potential impact on interest rates.
Fed FOMC Meeting Minutes: Rate Cut Expectations
The minutes of the Federal Reserve’s December FOMC meeting will be closely scrutinized for hints on future interest rate decisions. With expectations for a January rate cut now at 11%, investors will be keenly watching for any signs of a shift in the Fed’s stance.
Earnings Season: Delta, Walgreens, and More
A handful of corporate results are due this week, including Delta Air Lines, Walgreens Boots Alliance, KB Home, and Constellation Brands. These earnings reports will offer a glimpse into the health of various industries and their prospects for the year ahead.
CES 2025: A Platform for Innovation
The Consumer Electronics Show (CES) in Las Vegas will showcase the latest advancements in technology, with Nvidia CEO Jensen Huang’s keynote address on Monday night highly anticipated. Advanced Micro Devices (AMD) is also set to unveil its next-generation GPU, which could be a major catalyst for the stock.
Stock Picks: AMD and Constellation Brands
AMD: A Compelling Buy
With its upcoming CES showcase, AMD is poised to capitalize on the buzz surrounding its next-gen AI products. The company’s strong track record of receiving analyst upgrades following product launches, combined with its undervalued status and upbeat profitability outlook, make it an attractive buy.
Constellation Brands: A Sell Ahead of Earnings
Constellation Brands faces a challenging outlook ahead of its fiscal Q3 earnings report, with minimal growth expected in both revenue and EPS. The company’s wine and spirits segments are under pressure due to shifting consumer preferences and a tougher macroeconomic environment, making it a stock to avoid for now.
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