US Imposes Tariffs on Eight European Countries; Market Outlook and Earnings Reports Ahead

Written by Michael A. Johnson, Lead Editor & Market Strategist

Upcoming Economic Events and Market Insights

Next week, several key economic indicators and corporate earnings reports are set to be released, which could significantly impact market sentiment.

Key Economic Data Releases

China's GDP Growth Rate for 2025: Scheduled for release on Monday, January 19. Analysts expect a growth rate of around 4.6% for Q4 and 5.0% for the full year.
U.S. Consumer Confidence Index: The final value for January from the University of Michigan will be published on Friday.
PCE Inflation Data: The Federal Reserve's preferred inflation measure, the PCE index for November, will be released on Thursday. Morgan Stanley predicts a significant rebound in this data.

Corporate Earnings Reports

Major Companies Reporting: Netflix, Johnson & Johnson, and Intel are among the companies set to announce their earnings next week. Analysts expect Netflix to report a 28% year-over-year increase in EPS, driven by popular content.
Intel's Earnings Outlook: Expected to show a decline in EPS by 40%, reflecting ongoing challenges in the semiconductor market.

Geopolitical Developments

Trump's Tariff Policy: President Trump is expected to announce new tariffs on imports from several European countries starting February 1, with rates potentially increasing to 25% by June. This could create volatility in the markets.
Supreme Court Decisions: The U.S. Supreme Court is set to rule on Trump's tariff policies and the case regarding the dismissal of Federal Reserve Governor Lisa Cook, which could have implications for the Fed's independence.

Davos World Economic Forum

Trump's Attendance: President Trump will lead a large U.S. delegation at the World Economic Forum in Davos from January 19 to 23, where he will discuss cooperation in a competitive world.
Focus on Technology: The forum will also feature prominent tech leaders, including CEOs from Nvidia and Microsoft, discussing AI governance and its global impact.

Conclusion

Next week promises to be eventful with significant economic data releases, corporate earnings, and geopolitical developments that could influence market dynamics. Investors should stay alert to these updates as they unfold.

About the author

Michael A. Johnson

Michael A. Johnson, Ph.D. in Economics from Harvard University, brings 20 years of expertise in market forecasting and trading strategies. As a former chief economist at Morgan Stanley, he oversees Intellectia’s Top News section, delivering data-driven perspectives on global economic shifts.