This week ahead || Feb 5th - Feb 9th 2024
Here's your news for the week ahead.
Flutter begins trading on NYSE: CEO joins Yahoo Finance
Flutter Entertainment, the parent company of sports gambling platform FanDuel, began trading on the New York Stock Exchange. Flutter CEO Peter Jackson commented on the timeline for sports betting legalization across the United States, mentioning that they expect to be operational in at least one or two of the big states like Florida, Texas, and California. He discussed the company's focus on delivering the best product for customers, mentioning the success of features like same-game parlays. Jackson also expressed excitement about the upcoming Super Bowl and the engagement it brings to the sports betting industry.
Novartis CEO explains 'prudent' 2024 guidance
Novartis (NVS) reported fourth-quarter results that missed analyst estimates. CEO Vas Narasimhan discussed the company's outlook for 2024 and beyond, forecasting mid-single-digit percentage net sales growth, which he described as "prudent" due to the loss of exclusivity of some drugs. He expressed confidence in the company's growth drivers and addressed supply issues with the prostate cancer drug Pluvicto, stating that new manufacturing outlets would ensure "unconstrained supply." Narasimhan acknowledged competition in oncology but emphasized Novartis' focus on areas where it has "unique science and unique capabilities," such as radioligand therapy and hematology. He also discussed concerns about the Inflation Reduction Act potentially harming drug development in the U.S.
Top 5 things to watch in markets in the week ahead
Investors are set to focus on upcoming earnings and economic data after a robust U.S. jobs report suggests a likely delay in Federal Reserve interest rate cuts. The S&P 500 reached a record high, driven by strong results from Meta Platforms and Amazon. Earnings season continues with major companies like Eli Lilly, Walt Disney, ConocoPhillips, and PepsiCo reporting this week. Investors are keen on insights about 2024, anticipating faster earnings growth than in 2023. U.S. data includes the ISM services PMI for January and insights from Fed officials. Oil prices fell amid recalibrated expectations for a Fed rate cut, but Middle East tensions persist. China's upcoming inflation data is expected to show intensified deflationary pressures, reflecting weak demand and a property sector slowdown. The Reserve Bank of Australia is anticipated to keep interest rates unchanged in its first policy meeting of the year, following slower-than-expected inflation in Q4.
Scorching US economy throws off market's Fed cut narrative
Robust U.S. economic data has prompted investors to reconsider the expectation of Federal Reserve rate cuts, challenging the narrative that fueled stock surges at the end of 2023. The S&P 500, up 4% this year, hit a record high in January. However, strong economic indicators, particularly the impressive jobs report, have shifted the narrative from a Fed pivot towards rate cuts. The CME FedWatch Tool now reflects a reduced probability of a near-term rate cut, causing market expectations to adjust. While some investors view strong growth positively for stocks, concerns about a potential inflationary rebound and increased interest rates pose challenges for certain sectors, including commercial real estate. Analysts anticipate a year of stock market gains, driven by optimism in artificial intelligence, but inflationary pressures and rising Treasury yields remain key concerns.
