January 22, 2018

Quincy Krosby

Senate leadership crafted a deal to end the partial shutdown of the U.S. government, as the earnings season continues this week, offering traders and investors a parade of reports from bellwether names in media, industrials, pharmaceutical and other sectors, Prudential’s Chief Market Strategist Quincy Krosby said Monday in her weekly “Connecting the Dots” outlook.

The Senate voted to end government shutdown Monday afternoon.

“The market typically shrugs off a partial government shutdown as long as it doesn’t linger on without signs of talks between parties and within parties,” Krosby said.

This week’s earnings include United Technologies, 3M, Caterpillar, General Electric, Whirlpool, Netflix, Comcast, Johnson & Johnson, Proctor & Gamble, Ford, American Airlines, Verizon and Starbucks.

“We’re going to hear from the companies that make up much of the industrial sector that has been doing so well,” she said. “The market is rejoicing that revenue growth is up in the earnings reports that have been announced.”

Also this week, there’s a focus on Treasury yields as both the two-year and ten-year yields inch higher in reaction to stronger economic growth, she said.

On Thursday, the European Central Bank will hold a monetary policy meeting in Frankfurt that will be followed closely by analysts and traders alike, she said.

This week’s data releases:

  • Monday: Chicago Fed national activity index
  • Wednesday: Home price index; existing home sales; Markit flash services PMI; and Markit flash manufacturing PMI
  • Thursday: Initial jobless claims; new home sales
  • Friday: First estimate of fourth quarter GDP; personal consumption; durable goods orders

To talk to Quincy Krosby about her views of the market, contact Lisa M. Bennett or Dara Scerbo.
 

Read Quincy Krosby’s full Q1 Market Commentary: Turning the Page.

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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Contact(s)

Lisa M. Bennett
phone 973-802-2894

Dara Scerbo
phone 973-367-9318