Markets This Week: Trump’s Davos Speech, Inflation Data, and Big Tech Earnings

It is a shorter trading week on Wall Street because markets are closed on Monday for the Martin Luther King Jr. holiday, but investors still face a busy calendar with major political events, key inflation data, and important earnings reports.

The week begins with the World Economic Forum in Davos, where President Donald Trump is set to speak on Wednesday. His speech is expected to focus heavily on housing reform, including plans to limit large investors from buying homes and new steps to lower mortgage costs through Fannie Mae and Freddie Mac.

Inflation and Fed in the Spotlight

On Thursday, the US government will release the delayed PCE inflation data for October and November, the Federal Reserve’s preferred inflation measure. This comes after last week’s CPI report showed inflation continuing to cool.

Investors will be watching closely ahead of the Federal Reserve meeting next week, as policymakers remain divided on whether to continue cutting interest rates.

The Supreme Court will also hear arguments on Wednesday in the case involving Fed Governor Lisa Cook, whom Trump is trying to remove. The outcome could affect the future independence of the central bank.

Big Earnings Week for Tech and Airlines

Several major companies report earnings this week, led by Netflix and Intel.

Netflix reports on Tuesday, with investors watching for updates on its possible bid for Warner Bros Discovery and subscriber growth.
Intel reports Thursday after its stock surged on optimism around its new AI chips and fresh government support.

Other big names reporting include United Airlines, Johnson & Johnson, GE Aerospace, Procter & Gamble, 3M, and several major banks.

Airline stocks will be closely watched after Delta warned about weaker profits last week, which sent the sector lower.