Weekly Roundup: February 6-10, 2023 (Week 6/62)

 Weekly Roundup: Week 6

 Market Review:

        Well, the fear in the market seems to be coming back to life. This week saw indices mixed, but finishing lower for the week. The fear of a recession seems to be coming more apparent, and the interest rate hikes are starting to concern investors as well. While the rally of the stock market to start 2023 was nice, it may have been short lived. We may be going back to the normal talks that ended 2022. Recession, Recession, Recession... Although the earnings have not been as bad as I thought, we are definitely seeing a sign of slowing growth. We are still seeing the inversion on the bond market as well. There's really no telling where this market could go. However, it may not end up the best.

Company Earnings

Wednesday: 

• Walt Disney Company (The)- Bob Iger returning has to be a highlight in this quarter. The company has definitely gained some momentum with him back at the helm. The company has announced that it will split into three parts Parks, ESPN, and Disney Entertainment. The company is looking to make a major transformation under Iger and looks to continue pushing for growth. The earnings were a lot better than expected and the dividend may be reinstated. It will start out as a modest dividend and look to grow throughout the years. 

Thursday:

• Pepsico, Inc. ($PEP)- Pepsi did a wonderful job of beating expectations. The company saw boosted sales, as the company effectively raised prices. Many of the subsidiaries saw double digit growth, but Frito Lay lagged a little bit. The demand for products decreased, but it was the hike in prices that carried it to a decent quarter. It will be interesting to see how Pepsi responds to the lower demand. Hopefully they can shift the demand and get it back in their favor. 

Market Outlook:

        This week will bring us the new inflation reports from January. We will have the CPI (Consumer Price Index) out on Tuesday, and the PPI (Producer Price Index) out on Wednesday. Inflation is expected to rise by 0.4%, but is supposed to be down year-over-year to 6.2%. This is still on a decline from the 9.1% peak we reached last year. We will hopefully get some clarity in the realm of digital assets, when the Senate Committee come together to discuss the topic on Tuesday. The US Census Bureau will release the retail sales report for January on Wednesday. This is going to give us a good view on if the typical consumer will still want to spend money on stuff. If we get a good number, this could create some positive sentiment for companies who influence these consumers. It is going to be a very eventful week, and it will be important to keep an eye out. I can see this as a make or break moment. We could see stocks flying high, or a disappointing point will likely make it more probable for a recession to incur. 

Thank you for reading and have a wonderful week!