The First Slice for Monday, January 27, 2025

The Fed, Tech Titans, and the Economy’s Big Week

This week will be a whirlwind for markets as the Federal Reserve and some of the biggest tech, energy, and finance players enter the spotlight. All eyes are on the Federal Open Market Committee (FOMC) meeting, where officials will decide whether to hit pause or continue with interest rate cuts amid stubborn inflation and a resilient labor market. The outcome could ripple across the economy, especially with Fed Chair Jerome Powell set to take media questions post-meeting—a moment always keeping investors on their toes.

Economic data will take center stage on Thursday, with the release of the U.S. GDP report for the fourth quarter and full year 2024. The Atlanta Fed predicts a 3% growth rate, signaling an uptick from the previous quarter’s 2.8%. On Friday, the Personal Consumption Expenditures (PCE) inflation report will reveal whether prices continued climbing in December, adding another layer of intrigue for analysts gauging the Fed’s next move. From home sales to retail inventories and jobless claims, the week is packed with insights into the economy’s pulse.

Tech fans and investors will buzz as several Magnificent seven companies report earnings. Microsoft, Meta, Tesla, and Apple are dropping their quarterly updates, with plenty of drama. Tesla’s delivery numbers came up short, raising eyebrows as CEO Elon Musk steps into a role within the Trump administration. Meanwhile, Microsoft’s financials follow its bold $500 billion AI investment spree, and Meta is doubling down on its tech bets. Apple will close the tech lineup, battling concerns about sluggish iPhone demand.

Outside of tech, other heavyweights like ExxonMobil, Chevron, and Shell will weigh in with quarterly earnings, offering a glimpse into the energy sector’s performance. Fresh off an analyst upgrade, General Motors is poised to share its strategy following the shutdown of its Cruise robotaxi program. From Visa and Mastercard shedding light on consumer health to Boeing, AT&T, and T-Mobile showcasing their industry moves, this week is a feast for anyone watching business trends and market dynamics……… [read more]