Major banks will report fourth-quarter earnings this week

Another Bureau of Labor Statistics (BLS) report on the health of the labor market, released last Friday morning, was not enough to stop the end-of-week sell-off from new all-time highs in the major US indexes. A pending (“phase one”) trade deal with China, scheduled to be signed on Wednesday, and the avoidance of a hot war in the Middle East helped market participants return to generally positive sentiment last week.

Pre-market investors appear to be in a buying mood to start the new week, with Dow futures +100, Nasdaq +38 and S&P 500 +10 – all of which have further all-time highs in their sights. This comes a day before Q4 earnings reports, which start en masse 24 hours from now, when the big banks like it JPMorgan J.P.M., Citigroup C i Wells Fargo Joining WFC Delta Airlines DAL announcements expected before the opening bell.

We don’t see any significant macroeconomic data in today’s pre-market session, but this week will be hot too: tomorrow will bring us fresh Consumer Price Index (CPI) data for December, which is expected to be in line with last month’s data + 0.3% header (+0.2% core). The next day will see the reading of the new Producer Price Index (PPI) for December, along with the new Empire State Index (tracking productivity in New York State) and the government’s Beige Book release that afternoon.

The last time markets saw a significant decline in indexes was just before the third-quarter 2019 earnings season, when fears of an economic slowdown, partly as a result of the protracted trade war with China, made market participants wary of trade heading into the calendar fourth quarter. These concerns were somewhat misapplied: This earnings season, while there was certainly a cooling off from previously reported quarters, we still saw industry strength in places like technology. By Halloween week, all three major U.S. indexes were on an almost straight upward diagonal line, taking us to current near all-time highs.

Click to get your free Delta Air Lines, Inc. report. (DAL): Free JPMorgan Chase & Co. Stock Analysis Report. (JPM): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Citigroup Inc. (C ): Free Stock Analysis Report To read this article on click here. Zacks Investment Research