(DAILY NOTION): How Will Wall Street Perform This Week? Next Mover: Earnings Report, U.S. GDP, Biden Stimulus Package

NASDAQ 100 (as of Jan 25, 2021 at 10.55 a.m.)

Source: Yahoo Finance

SPX 500 Futures (as of Jan 25, 2021 at 10.55 a.m.)

Source: Yahoo Finance

US30 Futures (as of Jan 25, 2021 at 10.55 a.m.)

Source: Yahoo Finance

As a new week begins today, the NAS100 futures rose 0.56%, and the SPX500 futures rose 0.33%. The US30 futures gained 74 points. As a summary of last week’s performance, all NAS100, SPX500, and US30 recorded gains for the week.

This new week is set to be a highly watched one, as it is the busiest week in earnings reports with 111 SPX500 and 13 Dow components due to report earnings. Companies such as Microsoft, Tesla, and Apple will be posting their reports this week. In terms of big banks, results from JP Morgan beat expectations while results from Citigroup fell short. The U.S. fourth-quarter Gross Domestic Product (GDP) is also due for release this Thursday, Jan 28. The Federal Reserve will also be meeting this week, the first meeting since President Biden's inauguration.

New president Joe Biden has been actively tackling issues related to the climate and markets continue to wait eagerly for progress in his proposed stimulus package, which includes additional unemployment benefits, a rise in the minimum wage, and aid to state and local governments. However, Business Insider reported that the package is currently facing resistance from Republicans in the U.S. Congress.

In terms of coronavirus infections, the U.S. does not seem to be doing well in its battle against the virus, as the Johns Hopkins University reported on Sunday that the total infections have now exceeded 25 million, or about 8% of the population. President Biden has also cautioned that the death toll could very well reach 600,000 before immunization from the vaccine will be clearly seen. Any large increase in cases could affect the risk-on sentiment in the markets.

In conclusion, traders would be closely watching for results from the earnings report, U.S. GDP, and any high-impact news following the Fed’s meeting. Progress on President Biden’s stimulus package and the spread of the coronavirus infections would also be on the radar. Let's hope for a great week on Wall Street.

FOLLOWME User Sentiment (as of Jan 25, 2021 at 10.50 a.m.)

SPX500

Short – 79.57%

Long – 20.43%

NAS100

Short – 79.79%

Long – 20.21%

US30

Short – 69.99%

Long – 30.01%