The week ahead 01/31/2022

Could the market be as dramatic and volatile this week as it was during the last one?

Given the fragility of the broader markets, massive earnings reports, geopolitical uncertainty heading into the Olympics, and the typical pattern of the markets when we have a bad January… the answer is yes.

Do we know that?

Of course not. But we’re here to give you everything you need to know about the next five trading days.

Let’s break down everything you need to know for the investing week ahead!

Upcoming for Rate of Return:

Wednesday (Feb. 2) — How to Build Your Credit

Thursday (Feb. 3) — Top Stock Ideas

Friday (Feb. 4) — Startups You Should Know About, Part II (first post of this series linked here)

Sunday (Feb. 6) — Week in Review

In this post, we’ll cover:

• Quarterly financial reports worth reading

• Investor events to keep an eye on

• Major economic releases

The Investing Week Ahead – Too Long, Didn’t Read:

IPOs are absent as the market remains moody, major earnings from the likes of Amazon, AMD, Google, Meta, PayPal, Pinterest, Snapchat, Spotify, & Qualcomm, MicroStrategy’s investor event will try to sell more companies on Bitcoin, a monster week of economic reports heading into the Winter Olympics, and stocks that soared last week from biz ops changes & stock buybacks.

January 31: NXP Semiconductors (NXPI)

February 1: Advanced Micro Devices (AMD), Alphabet (GOOG), Electronic Arts (EA) Exxon Mobil (XOM), General Motors (GM), Match Group (MTCH), MicroStategy (MSTR), PayPal (PYPL), Starbucks (SBUX), UBS (UBS), UPS (UPS)

February 2: AbbVie (ABBV), Dynatrace (DT), Humana (HUM), Meta Platforms (FB), Qualcomm (QCOM), Spotify (SPOT), T-Mobile (TMUS), Waste Management (WM)

February 3: Activision Blizzard (ATVI), Amazon (AMZN), Cigna (CI), Ford Motor (F), Fortinet (FTNT), Honeywell (HON), Merck (MRK), Penn National Gaming (PENN), Pinterest (PINS), Snap Inc (SNAP), Unity Software (U)

February 4: Bristol-Myers (BMY), Regeneron (REGN), Twist Bioscience (TWST)

Big week ahead of us. What’s interesting to me is despite stellar reports from Microsoft, Apple, and Tesla last week, the markets traded down -1%. The GDP report came in strong and the housing market is moving right along.

Strong company earnings, strong GDP, strong housing market — stock market trades down? There’s a lot of concern (understandably) surrounding rate hikes and what Jerome Powell might do this year. In my opinion, if we see strong earnings results from the countless household names reporting this week, we might see the market calm down as investors realize companies are doing just fine.

Investor Events:

MicroStrategy’s World 2022 Event will be focused on enterprise analytics and digital transformation. In other words — “let’s talk about Bitcoin’s practicality for corporations.” Notable speakers include CEO Michael Saylor, Block (SQ) CEO Jack Dorsey, Silvergate Capital (SI) CEO Alan Lane, & BitPay CEO Stephen Pair.

January 31: Boeing (BA) to sign Qatar freighter deal, coinciding with a visit by the Gulf state’s ruling emir

February 1: Aramark (ARMK) Annual Meeting

February 1: Cathie Wood (ARK Invest) Q&A on Public.com

February 1-2: MicroStrategy (MSTR) World 2022 Event

February 2: LendingTree (TREE) Investor Day

In case you missed it, I post this video to TikTok this morning explaining my curiosity regarding lithium and EVs. This curiosity stemmed from my friends Chris, Dave, and Jordan of the Dumb Money YouTube channel — where they stated Lithium Americas Corporation (LAC) is a stock they just bought $1M of.

Major Economic Updates:

We’ll be keeping the closest tabs on if “The Great Resignation” is holding steady via Job Quits data, the new unemployment rate from the January Jobs Report, and the beginning of the Winter Olympics during a time of geopolitical uncertainty.

February 1: ISM Manufacturing Index, Job Openings, Job Quits, Construction Spending

February 2: ADP Employment Report, Home Ownership Rate, OPEC+ Meeting (oil output)

February 3: ISM Services Index, Jobless Claims

February 4: January Jobs Report (updated unemployment rate), The 2022 Winter Olympics Commence in Beijing, China

Now more than ever economic data is important. We’re seeing the markets move lower which historically happens in tandem with a poor economy. However, if the underlying economy continues to run strong, our flagship companies (who tend to profit during this type of environment) will likely continue to do well.

I’m not saying very “uncertain” company won’t continue to compress — I’m saying companies with long track records of delivering value to shareholder might not sell off as dramatically as the overall market.

Event-Driven Winners:

Our friends at LevelFields took the time to scrub through thousands of data points and determine how events impacted stock prices last week. This info may help you with forming your swing trading theses this week (if that’s your thing), or simply seeing what actions cause stocks to jump!

Have a great start to your week! If you find these Week Ahead posts helpful, please consider sharing with a friend!

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.