Last week, Netflix reported better-than-expected revenue and added 13.1 million users in the fourth quarter of 2023, surpassing expectations by over 50%. Their initiative to crack down on password sharing helped drive user growth. Conversely, Tesla’s earnings report disappointed investors, leading to a 12% drop in its stock value on Thursday.
The advance estimate of the fourth quarter 2023 Real Gross Domestic Product (GDP) showed a 3.3% annualized increase. Notably, the Real US economy expanded by 2.5% in 2023, defying many economists’ predictions of a recession in the same year. This growth highlights the economy’s resilience amidst challenging forecasts.
This week, we are looking forward to earnings reports from major companies like United Parcel Service (UPS), Alphabet Inc. (Google), Starbucks, Boeing, Mastercard, Apple, Amazon, and Meta Platforms, Inc. (formerly known as Facebook). These reports have the potential to influence the broader stock market.
On the economic front, the Federal Open Market Committee (FOMC) is set to announce its rate decision on Wednesday following their meeting. The CME FedWatch Tool has a 96.9% likelihood of maintaining the federal funds rate at 5.25%-5.5%. Stable interest rates, combined with positive earnings reports and guidance, could set the stage for the S&P 500 to continue setting higher all-time highs.
Thank you for reading, and here’s to a great week ahead.
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