Major Week Ahead: New Year Rate Decision, Tech Giants' Earnings, and Mingming's HK Listing

Market Focus for the Coming Week

The market's attention will shift back to macroeconomic factors, monetary policy, and corporate earnings in the upcoming week. The Federal Reserve's interest rate meeting is expected to be the highlight.

Key Earnings Reports

Approximately one-fifth of the S&P 500 constituents will report quarterly earnings next week, including major players like Apple, Microsoft, Meta, and Tesla. Other significant companies such as SanDisk, Western Digital, Seagate, Samsung, and SK Hynix will also release their financial results.

Geopolitical Risks and Political Events

Geopolitical risks, the selection of the Federal Reserve Chair, and potential government shutdowns in the U.S. will continue to affect global risk sentiment. Experts warn that if issues like Greenland escalate, combined with tariff threats, market confidence could be significantly impacted.

Federal Reserve Meeting Insights

The Federal Reserve will hold its first interest rate meeting of the year on Thursday at 3 AM. Most analysts expect the Fed to maintain current rates, as Chair Powell indicated a willingness to wait and observe economic developments after three consecutive rate cuts.

Analysts from Nomura Securities suggest that the Fed might delay its first rate cut until May, after Powell's term ends. The focus will be on the number of dissenting votes and accompanying statements to gauge future rate cut timing.

Political Pressures

Powell may face questions regarding judicial investigations against him and criticisms from President Trump, which could influence the Fed's decision-making independence.

Earnings from Tech Giants

Next week, several major tech stocks will report earnings, including Tesla, Apple, Microsoft, and Meta. Tesla's focus has shifted from financial data to advancements in FSD, humanoid robots, and Robotaxi technology. Microsoft and Meta will address the profitability of AI investments, while Apple faces rising cost pressures.

Upcoming IPO: Mingming Busy

Mingming Busy (01768.HK) is set to debut on the Hong Kong Stock Exchange on January 28. The company, which operates the "Snacks Busy" and "Zhao Yiming Snacks" brands, is the largest chain retailer in China by GMV for leisure food and beverages.

The company plans to issue 14.1 million H-shares, with a price range of HKD 229.6-236.6 per share. The IPO has seen significant interest, with a subscription rate of 1528.2 times.

U.S. Treasury Secretary's Announcement

U.S. Treasury Secretary Becerra confirmed that President Trump may announce the new Federal Reserve Chair as early as the week of January 26, with four strong candidates in consideration.

Economic Data Releases

Key economic data, including durable goods orders and the Dallas Fed business activity index, will be released next week.

Earnings Reports

Companies like UnitedHealth and Boeing will report earnings before the market opens, while Seagate will report after market close.

Conclusion

The upcoming week is poised to be eventful with significant earnings reports, the Federal Reserve meeting, and potential political developments that could impact market sentiment. Investors should stay alert for these key events.