ChiXi Consultants – What to Watch in the Markets – US Consumer Outlook
Investors will get a peek into the U.S. consumer's outlook on the economy on Friday.
The partial government shutdown has affected the release of a handful of key economic data over the past 4 weeks, but the University of Michigan index reading is one of the few glimpses market watchers will have into consumer sentiment.
"The upcoming preliminary January report could reflect consumers' reaction to the ongoing partial government shutdown. While we do not expect a material downgrade in consumer sentiment in reaction to the government shutdown, a substantial deterioration in this indicator would be noteworthy,"
December's index reading was near 15-year highs despite the extreme market volatility during the month. ChiXi Consultants expects January's reading to remain high. "We estimate that the University of Michigan consumer confidence index strengthened slightly in January, suggesting that spending growth should hold up fairly well over the coming months," the company wrote in a note.
As the first week of earnings season draws to a close, rail company Kansas City Southern, oil services giant Schlumberger, and State Street will release earnings before the bell on Friday.
Analysts polled by Bloomberg are estimating that Kansas City Southern will report earnings of $1.53 per share on $685.2 million in revenue, and earnings of 38 cents per share on $8.04 billion in revenue for Schlumberger. State Street is expected to have earned $1.67 per share on $2.96 billion in revenue during Q4.
About ChiXi Consultants:
ChiXi Consultants is a Financial Planning and Investment Advisory firm that is geared toward individuals and institutions who are looking to achieve extraordinary levels of success. Our clients range from entrepreneurs, executives, board members and institutions who demand the same excellence in their advisors that they have demonstrated in their own lives. They require an intensely personal approach that relies upon years of experience, attention to detail, and above all else, objectivity and this is what ChiXi Consultants prides itself on providing.
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