This week ahead || Jan 28th - Feb 2nd 2024
Here's your news for the week ahead.
Alaska and United airlines have begun flying Boeing Max 9 jetliners again
Alaska Airlines has resumed flying Boeing 737 Max 9 jetliners after they were grounded due to a panel blowing out of the side of one of the airline's planes. The airline said it completed its final inspection of their group of the aircraft and resumed flying the Max 9 with a flight from Seattle to San Diego. The Federal Aviation Administration approved the inspection and maintenance process to return the planes to flying. Inspections are expected to be completed by the end of next week, allowing the airline to operate a full flight schedule. The first United passenger flight on a Boeing MAX 9 since the incident departed from Newark, New Jersey, to Las Vegas. The Federal Aviation Administration has detailed the process that airlines must follow to inspect and, if necessary, repair the panels called door plugs.
Fed Rate Decision Could Be the Prelude to a March Cut
In the upcoming week, market focus will center on the Federal Reserve's policy meeting in the U.S., where investors are anticipating signals regarding a potential interest rate cut in March. Key economic indicators, including retail sales and housing data, are expected to offer insights into the U.S. economic health. The World Economic Forum in Davos will convene global leaders to discuss economic challenges, while China's release of full-year GDP figures will provide crucial information about the world's second-largest economy. The energy sector is poised for a potential rebound amid rising geopolitical tensions and upcoming earnings reports. Tata Motors has announced a price hike across its passenger vehicle range in India due to rising input costs, and Alaska Airlines has resumed Boeing 737 Max 9 flights following safety concerns. Additionally, central bank decisions are anticipated in the UK, Sweden, Brazil, Colombia, and Chile, contributing to global economic outlook considerations.
UN urges countries to reverse funding pause for Palestinian agency
The United Nations (U.N.) and aid organizations are urging countries, including major donors like the United States and Germany, to reconsider their decision to suspend funding for the U.N. refugee agency for Palestinians (UNRWA). This pause in funding comes after allegations by Israel that some UNRWA staff were involved in the deadly Hamas attacks on Israel in October. U.N. Secretary-General Antonio Guterres expressed understanding for the concerns but appealed for the continuity of UNRWA's operations. The UNRWA commissioner-general, Philippe Lazzarini, warned that humanitarian responses may be suspended if funding is not reinstated, putting aid for around two million people in Gaza at risk. The conflict has led to over 26,000 deaths, and with reduced aid flows, there's a growing risk of famine and preventable diseases. Palestinians affected by the funding cuts expressed anger, while U.N. experts warned of inevitable famine in Gaza. Israel's Foreign Minister called for UNRWA to be replaced, but the U.N. defended its overall strong record, stating that 12 staff members were implicated, nine terminated, one deceased, and identities of the other two being clarified. Norway and Ireland committed to continue funding, but other countries have not yet reinstated aid. UNRWA was established to support refugees from the 1948 war and provides services to Palestinians in various regions.
Earnings week ahead: Apple, Microsoft compete for title of world's largest company
Apple (NASDAQ:AAPL) is set to announce its Q1/24 earnings on Feb 1, after-market close, with street estimates of $2.10 EPS and $118.3 billion in revenues. Despite consistently surpassing EPS forecasts in 7 of the last 8 quarters, Wall Street expects a 1% decrease in sales to $89.28 billion, marking the fourth consecutive quarterly decline. The ProTips tool warns of high multiples and weakening margins. Apple recently lost its title as the world's largest company to Microsoft (NASDAQ:MSFT). Microsoft, reporting on Jan 30, is anticipated to post net income of $20.6 billion, with strong confidence in its AI and cloud initiatives. General Motors (NYSE:GM) is expected to report Q4/23 earnings on Jan 30, with estimates of $1.14 EPS and $39.5 billion in revenues. ProTips highlight strengths, including analyst revisions, low P/E ratio, strong free cash flow, and favorable earnings multiple. Amazon (NASDAQ:AMZN) will announce Q4/23 earnings on Feb 1, with Wall Street expecting $0.79 EPS and $166.3 billion in revenues. ProTips suggest stretched multiples, posing downside risk. Mastercard (NYSE:MA) will report Q4/23 earnings on Jan 31, pre-market open, with estimates of $3.08 EPS and $6.48 billion in revenues. Oppenheimer upgraded Mastercard to Outperform, and InvestingPro's Financial Health indicates 'Great Performance.' Mastercard is part of the ProPicks Best of Buffett strategy, outperforming the market by 166.0% over the last decade, showcasing the power of AI-driven strategies for investors seeking market opportunities.
