Key takeaways:

• As traders reevaluate the pace and magnitude of any rate cuts by the Federal Reserve, new inflation figures take centre stage

—

Economic Calendar and News

This week’s headline event is the release of Australia’s November inflation report on Wednesday. The Australian Bureau of Statistics will report on a new headline inflation rate, with some investors optimistic it will be lower than the previous two years. In addition to this, several key economic data are lined up, including preliminary retail sales data and building permits data on Tuesday. The Balance of Trade figures are due on Thursday, followed by home loan lending figures on Friday.

In the United States, attention turns to the Consumer Price Index (CPI) figures coming out on Thursday. The following day, the Producer Price Index (PPI) will be released.

Stocks on Watch

Boeing (NYSE: BA) is facing new challenges as the US airline regulator has ordered a temporary grounding of some 737 Max 9 jets for inspections. This action comes after a fuselage part on an Alaska Airlines flight was found to have come off.

The US Department of Justice is reportedly advancing towards filing a sweeping antitrust lawsuit against Apple (NASDAQ: AAPL). The investigation is said to be in its late stages, signalling potential trouble ahead for the consumer electronics giant. The company’s shares dipped around 1% following The New York Times reported on the lawsuit, and shares are down 8.5% since their December 14 high. The potential lawsuit may challenge Apple’s exclusivity practices, such as the Apple Watch’s compatibility only with iPhones and the limited availability of iMessage and Apple Pay to Apple devices. CFRA analyst Nick Rodelli expressed heightened concerns about Apple’s legal risks, despite a 48% increase in its share price in 2023.

US bank earnings will be hot off the press this week. Banks like Bank of America (NYSE: BAC), Citibank (NYSE: C), and Wells Fargo (NYSE: WFC) are set to report their earnings on Friday.

For Bank of America, Yahoo reports a notable year-over-year decline in its quarterly earnings, with figures showing a drop to $0.68 per share. According to Yahoo, the bank’s revenues are also expected to have decreased by 2.2% from the previous year, totalling around $24 billion.

Citibank looks to do slightly better. Zacks Equity Research indicates the expected earnings per share for the quarter is projected at $1.04. This is slightly lower compared to the EPS of $1.1 reported for the same quarter in the previous year.

Zacks posit Wells Fargo’s EPS forecast for the quarter is $1.15. The reported EPS for the same quarter last year was $0.67.

The recent rally in oil prices, which saw a nearly 2.5% gain on Friday evening US-time, places energy companies such as Woodside Energy (ASX: WDS) and Beach Energy (ASX: BPT) under the spotlight. If this price momentum continues, it may have implications for these companies throughout the week.