Without a doubt, this week will be as it gets to likely determine the trajectory of the markets for the rest of the quarter and perhaps the rest of the year. While the naïve course of action is to focus on fourth quarter and full-year 2018 results, smart eyes will be on guidance. After all; backward results have for the most part already been telegraphed to the markets.
What we are dying to hear is whether those worries that roiled the markets in the fourth quarter of 2018 were grounded in fact or spun from speculation. Hence, guidance, from the largest companies in the United States, the Federal Reserve and the Bureau of Labor statistics is paramount for professional investors.
Companies reporting and providing forward guidance this week are Apple (AAPL), Advanced Micro Devices (AMD), Amazon (AMZN), Biogen (BIIB), Harley-Davidson (HD), Verizon (VZ), eBay (EBAY), McDonald’s (MCD), Qualcomm (QCOM), Facebook (FB), Honeywell (HON), UPS (UPS), Exxon-Mobil (XOM) and, Alphabet (GOOG / GOOGL), to name a few.
On Wednesday we get guidance from the FOMC when the central bank delivers its monetary policy decision. I expect no rate hike and a more dovish tone in the announcement.
Throughout the week, important economic variables will be disseminated by the Federal Government, culminating with the labor / jobs report for December. However, be forewarned that due to the US federal government shutdown, most of these economic data points might be more inaccurate than usual.
So, buckle up for what might be a wild and wacky week. It already started up on a sour note after Nvidia (NVDA) provided weak forward guidance and Caterpillar’s (CAT) results and guidance were soft.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long AAPL, AMZN, FB, CAT, NVDA, GOOG, GOOGL, QCOM, XOM, VZ, AMD & UPS; although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right-hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
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