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US Equity Investors to Watch Out for Magnificent-7 Earnings, Fed's Preferred Inflation Gauge, Tariffs This Week
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US Equity Investors to Watch Out for Magnificent-7 Earnings, Fed's Preferred Inflation Gauge, Tariffs This Week
Jan 27, 2025 3:10 AM

05:39 AM EST, 01/27/2025 (MT Newswires) -- US equity investors will focus on earnings from the so-called Magnificent-7 group of stocks this week while watching closely trade policy announcements, the January monetary policy announcement, and the Federal Reserve's preferred inflation data.

* Colombia agreed to accept flights of deported migrants from the US on Sunday, hours after President Donald Trump warned of steep tariffs on imports and other sanctions, Fortune reported early Monday. The duo clashed Sunday over the deportation of migrants, it said.

* Investors will be watching if the Trump administration will impose 25% tariffs on Canada, Mexico, and China, possibly as of Feb. 1.

* Microsoft ( MSFT ) , Meta Platforms ( META ) , Tesla (TSLA), and Apple (APPL) will report quarterly earnings this week, implying more than half of the Magnificent-7 will be out with results.

* S&P 500 earnings are up more than 45% year-over-year based on 16% of the index firms that have reported Q4 results, versus a FactSet consensus as of Dec. 31 for almost 12% gain, a D A Davidson note said. The "large outperformance thus far" is being driven by financials.

* Scotiabank said the current Q4 earnings beat ratio is about 80%, and the sales beat at roughly 55%. "If the current earnings beat ratio stands through the rest of the season, then it would be among the highest earnings beat ratios on record, with the only material exceptions being in the initial stages of the pandemic."

* The core personal consumption expenditures price index will likely rise 0.2% month-over-month in December from 0.1% in the previous month, Bloomberg-compiled data showed early Monday. The data is out on Friday. The year-over-year core PCE was 2.8% in November.

* Stifel said it sees core PCE "stuck" at 2.7% to 2.9% in 2025, implying "little possibility" of interest-rate cuts until economic growth weakens, which itself is "not bullish."

* The Fed will likely hold rates at 4.25% to 4.5% at its policy meeting on Wednesday, according to the FedWatch Tool.

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