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30 October 2017

Quincy Krosby: Tax reform push, earnings continue with Apple headlining, data deluge, Fed meeting and naming of Fed chair

Quincy Krosby, Chief Market Strategist, Prudential Financial
Another incredibly busy week for the markets will be led by developments on tax reform, more big-name earnings releases, and the possibility that a new Fed chair will finally be announced, Prudential’s Chief Market Strategist Quincy Krosby said Monday in her weekly “Connecting the Dots” outlook.
 
Investors remain focused on prospects for tax reform, as leaks indicate that the inevitable horse trading for votes continues in earnest. “The more that we see senators coming on board, the more we realize that they will probably be able to get that clear Republican vote without having to cross the aisle,” she said. “The market is expecting that there will be a package of some sort involving tax cuts, if not permanent tax reform.”
 
The long-awaited White House announcement of who will be the next Fed chair is expected this week, with Jerome Powell, a member of the Fed’s Board of Governors, ostensibly the president’s choice to replace Janet Yellen.
 
“He represents a continuation of the careful, gradual approach that was set by Yellen,” Krosby said. “However, he also believes that we need more regulatory rollback in the financial industry.”

Earnings continue to be an important catalyst for the market and this week will include prominent names: Mondelez, Kellogg, Pfizer, MasterCard, Allergan, Facebook, Kraft Heinz, Starbucks and Apple.
 
“We’ve seen how the tech names have taken over the headlines,” Krosby said. “We’ll see if Apple can continue the move with big tech.”
 
After last week’s GDP numbers were better than expected, this week will be punctuated by a deluge of economic data releases including today’s Personal Income and Outlays report; Tuesday’s Case-Shiller home price index; Wednesday’s reports on motor vehicle sales and construction spending; Thursday’s Productivity and Costs indicator; manufacturing and service sector reports; factory orders; and Friday’s much-anticipated employment report.
 
To talk to Quincy Krosby about her views of the market, contact Lisa M. Bennett or Dara Scerbo.


Read Quincy Krosby’s full Q4 Market Commentary: The End Game
 
Contact(s):
Lisa M. Bennett
phone 973-802-2894

Dara Scerbo
phone 973-367-9318
 
The views and opinions are those of the author at the time of publication and are subject to change at any time due to market or economic conditions. This is solely for informational purposes. This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

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