Monday Morning Meeting Notes (01/23/2023)

General Info:

• The debt ceiling saga has begun and will likely continue to be in the news until resolved
• The debt ceiling is more of a political bargaining chip than a genuine default concern; for context, the debt ceiling has been raised 22 times over the last 25 years and more than 100 times since World War II, so it’s far from an infrequent event
• U.S. Treasury Secretary Janet Yellen estimated that the Treasury can utilize certain measures to continue paying external obligations until June if the debt ceiling isn’t raised by then
• Fun Fact: Cleveland was originally spelled “Cleaveland” until 1831 when a newspaper, The Cleveland Advertiser, shortened the city’s name to fit it on the newspaper’s masthead

Monday 01/23:

• FNB Corp and Baker Hughes report earnings
• U.S. Conference Board leading index
• Eurozone consumer confidence for January
• The Bank of Japan releases the minutes from its December meeting

Tuesday 01/24:

• Microsoft, Johnson & Johnson, 3M, Verizon, General Electric, Raytheon, Halliburton, Lockheed Martin, Capital One, and Texas Instruments report earnings
• S&P Global Manufacturing PMI for the U.S., Eurozone, U.K., Germany, and France
• S&P Global Services PMI for the U.S., Eurozone, U.K., Germany, and France

Wednesday 01/25:

• AT&T, Abbott Labs, ADP, Tesla, Boeing, Kimberly-Clark, CSX Corp, General Dynamics, Crown Castle, NextEra Energy, NextEra Energy Partners, and ServiceNow report earnings
• Germany IFO business climate for January

Thursday 01/26:

• Mastercard, Visa, Intel, Sherwin-Williams, CNX Resources, Marsh & McLennan, KLA Corp, Comcast, Fair Isaac Corp, American Airlines, Southwest Airlines, and JetBlue Airways report earnings
• The U.S. announces Q4 2022 GDP data, which is expected to have increased at a pace of 2.7% annualized
• U.S. new home sales for December
• South Korea Q4 2022 GDP data

Friday 01/27:

• American Express, Chevron, and Colgate-Palmolive report earnings
• University of Michigan consumer sentiment for January
• U.S. personal income and spending data for December
• The Fed’s preferred inflation gauge, core personal consumption expenditures (Core PCE), is included as part of this release
• Core PCE is expected to have risen 0.3% in December, which would bring the year-over-year figure down from 4.7% to 4.4%