Key takeaways:

• With the S&P 500 setting a new record last week, investors will tune in to offshore inflation data and US earnings to see whether the ASX can follow suit 

—

Economic Calendar and News

On Tuesday, the NAB business confidence survey is the highlight of the local economic calendar, providing insights into the business sentiment in Australia.

Investors will await Friday’s Personal Consumption Expenditures (PCE) Index publication from the US, which is the Federal Reserve’s preferred inflation gauge. The last reading in November indicated a fall to 2.6%, marking the lowest level since early 2021.

The week will also bring preliminary estimates of the US fourth-quarter GDP, as well as data on new and pending home sales, durable goods orders, and Purchasing Managers’ Indexes (PMIs). Internationally, events to watch include New Zealand’s quarterly CPI reading and policy meetings by the Bank of Japan, Bank of Canada, and the European Central Bank.

Stocks on Watch

Several high-profile companies are on investors’ radars this week. Tesla (NASDAQ: TSLA) will report earnings on January 24 after US market close, amid recent price slashes on some car models in Europe and China which brought its margins into focus. Analyst consensus from Zacks Investment Research estimates YoY quarterly revenues to increase 7%, and for quarterly EPS of $0.60 USD. The aggregate of 44 analyst ratings on Selfwealth platform has TSLA as ‘Hold’ (five ‘strong buy’, 12 ‘Buy’, 19 ‘Hold’, four ‘Sell’, four ‘Strong Sell’).

Netflix (NASDAQ: NFLX) is scheduled to report its quarterly results on Tuesday. It’s been over a year since the introduction of ad-supported plans, providing an opportunity to evaluate the company’s revenue and subscription growth. The media will no doubt pick out any learnings on the company’s stricter password policies. TradingView reports a potential earnings ‘beat’ for Netflix, with revenues up 11% to $8.72 billion USD and a quarterly EPS of $2.20 USD.

A slew of other significant earnings are due, including Johnson & Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG), United Airlines (NASDAQ: UAL), 3M (NYSE: MMM), Intel (NASDAQ: INTC), Visa (NYSE: V), and American Express (NYSE: AXP). Intel’s results will be watched for insights into AI and PC demand, while Visa and Amex could provide clues about the health of consumer credit markets.

Resmed (ASX: RMD), the dual-listed medical device manufacturer, is expected to report earnings on Wednesday US-time. Its share price trajectory and concerns surrounding Ozempic’s impact on sleep apnea device demand are likely to be key points of interest.

Resource sector stocks such as Woodside Energy (ASX: WDS) and Fortescue (ASX: FMG) are also set to release their fourth-quarter production reports, drawing the attention of market watchers on Wednesday and Thursday, respectively.