Week of 01/08-/01-12 Markets Near All-Time Highs, Earnings Season Begins

Stocks finished mixed on Friday's market session, with big banks kicking off earnings season and consumer inflation data (CPI report) showing hotter than expected results for December. JP Morgan and Well Fargo reported decent earnings, but are worried about the forecasted outlook of 2024. Next week we will continue with earnings season as investment banks take the main stage for the week. Morgan Stanley, Goldman Sachs, and Charles Schwab are among the major players to report their latest quarterly earnings. These reports will offer insight about the state of the economy and gauge the FED's confidence to start cutting interest rates.

Fourth quarter earnings in the stock market are crucially important to investors as they provide valuable insights into a company's financial performance during the final three months of the year. Many companies release their earnings reports during this period, which allows investors to assess the organization's profitability, revenue growth, and overall business operations. Fourth quarter earnings can significantly impact investor sentiment and drive stock prices, as they are closely watched indicators of a company's health and prospects. Positive earnings surprises or better-than-expected results can attract investors and potentially lead to a rise in the stock price. Conversely, disappointing earnings reports can result in a decline in stock prices as investors adjust their expectations and reassess the company's future prospects. Therefore, closely monitoring fourth quarter earnings is important for investors in managing their portfolios and making informed investment decisions based on the financial performance of the companies they are invested in.

The stock market is closed on Monday, January 15th for the Martin Luther King Jr. holiday.