Investors are expected to evaluate the Federal Reserve's interest rate outlook this week ahead of quarterly earnings reports from major U.S. companies. Following a series of strong economic data, Fed Chairman Jerome Powell said he would treat the possibility of a rate cut with "cautious" attitude. Unfortunately, Boeing has discovered a new problem with its 737 jet model, dealing another blow to the company.

1. Slight decline in futures market
The US stock futures market saw a correction on Monday. Investors are preparing for corporate earnings this week and evaluating Federal Reserve Chairman Jerome Powell's latest interest rate comments. As of 5 p.m. local time, Dow futures contracts were down 131 points, or 0.4%, S&P 500 futures were down 15 points, or 0.3%, and Nasdaq 100 futures were down 46 points, or 0.3%. Last week, the January labor market report was much stronger than initially expected, leading to major indicators seen as a sign of the strength of America's top economy. The economic data put upward pressure on U.S. Treasury yields as it pushed back the expected period of Federal Reserve interest rate cuts this year, but was welcomed by many investors as a sign of the strength of the U.S. economy. Surging shares of META Platform (META) and Amazon.com (AMZN) were other factors that boosted the stock market last session. In particular, META's stock price soared 20.3% in the last session, raising the market capitalization of Facebook's parent company to $1.2 trillion.

2. Earnings announcement wave approaching
The stock market's rebound is expected to be tested again this week as large U.S. companies report their annual results. McDonald's (MCD) is scheduled to report on Monday, and interested investors will be looking to see if the burger chain's profits have increased as price-competitive consumers opt for cheaper value meals. Caterpillar (CAT), a machinery manufacturer considered a leader in the U.S. industrial sector, is also scheduled to report fourth-quarter and full-year results. Media companies also have important earnings reports scheduled this week, with earnings from Disney (DIS), Fox, Warner Music Group, and The New York Times (NYT) expected to be in the spotlight. Interest in big tech companies is expected to continue after last week's announcement of market-moving earnings from giants such as tech giants Microsoft (MSFT) and Google owner Alphabet (GOOGL), as well as Chinese e-commerce company Alibaba. (BABA), rideshare company Uber (UBER), and chip designer Arm Holdings (ARM) are also scheduled to report earnings this week. While earnings are hoped to reflect broader economic signals, S&P 500 companies are expected to see earnings rise nearly 10% this year, following a 3.6% increase last year, according to LSEG data cited by Reuters.

3. Powell “cautious attitude toward interest rate cuts”
A strong U.S. economy could buy the U.S. central bank time to take a "cautious" approach to possible interest rate cuts, Federal Reserve Chairman Jerome Powell said Sunday in an interview with the CBS News program "60 Minutes." said. Powell also added that he would "like to see data showing inflation cooling to the Fed's stated 2% in a sustainable manner." His comments underscored a cautious sentiment among Fed officials to avoid the risk of a sharp rate cut amplifying price growth again. Last week, the Fed left its benchmark interest rate unchanged at 5.50% from 5.25%, emphasizing that it would need more evidence to confirm inflation is easing. “We have to balance the risk of moving too early or too late,” Powell added, declining to speculate that the Fed could almost certainly achieve a “soft landing,” and that the U.S. economy is strong in its own historically unprecedented way. explained.

4. Boeing mentions possible delay in 737 jet delivery
Boeing shares fell in pre-dinner trading Monday US time. The company cited a possible delay in some deliveries "in the near future" due to new problems that could arise with some of the bodies of the 737 jets. In an internal memo sent to executives Sunday, Stan Deal, Boeing's president of commercial aviation, noted that some of the model's two holes may not have been drilled precisely to the company's requirements. Deal said the issue was not an “immediate flight safety concern” and that all 737s could continue to operate safely. But he admitted that “rework” would have to be carried out on about 50 undelivered planes. “We are committed to delivering a perfect airplane every time, so some days during this time will give our team time to complete inspections and perform any necessary rework,” Dill said. Concerns about the safety of Boeing's fleet have been heightened by last month's fatal accident on one of the 737 Max 9s operated by Alaska Airlines, and the company has not yet provided an outlook for the 2024 fiscal year. , adding that “there is a lot left to show” to regain the trust of regulators and passengers.

5. Instability in the crude oil market
Crude oil prices were volatile on Monday, with concerns over the timing of a possible delay in interest rate cuts by the Federal Reserve and continued violence in the Middle East. As of 5 o'clock Eastern Time, U.S. crude oil futures prices fell 0.3% to $72.08 per barrel, and Brent crude oil futures prices fell 0.2% to $77.21 per barrel. Both indices showed some weakness last week, partly due to the US jobs report, and with expectations of an interest rate cut being pushed further into the future than originally expected, longer-term pressure on financial conditions could theoretically increase globally. It could hit demand in the biggest oil consumer. Analysts at ING said hopes for a ceasefire between Israel and Hamas also contributed to some of Friday's weakness. But they insisted a cease-fire was "not expected immediately." ING analysts say crude oil supplies remain "unaffected" despite the Houthi offensive in the US and UK, with the oil market running at a quarter of capacity in part because OPEC producers have large surplus production. . “But the situation could change quickly if tensions spread to other parts of the Middle East,” they added.