5 issues it’s best to know earlier than the inventory market opens on Monday January 30th

Traders on the NYSE floor

Source: New York SE

Here is the key news investors need to start their trading day:

1. Rally faces tests this week

The January rally has settled there, weathering a mix of earnings reports and forecast cuts, along with some weak economic data. It’s set to face some big tests this week given its big-tech-dominated earnings plan (more on that below) and the Federal Reserve’s next moves. The Fed’s policy-setting committee meets Tuesday and Wednesday. Market watchers expect the Fed to hike interest rates by a quarter point, which would be less than the last few hikes, so the focus will mostly be on what Chair Jerome Powell has to say about the Fed’s outlook following Wednesday’s announcement . Read live markets updates here.

2. Apple and Amazon top the paytable

Tech stocks are listed on the Nasdaq.

Peter Kramer | CNBC

Some big tech names are set to report earnings this week, but there are also some big companies from other segments set to make announcements. So far this earnings season has been so-so at best, with several companies beating low expectations while others have announced ahead of time that they will cut expectations even lower. Here’s a look at the upcoming earnings week:

  • Tuesday: General Motors, MC Donalds, UPS, Pfizer, Spotify (in front of the bell); snap, AMD (after the bell)
  • Wednesday: peloton (in front of the bell); Meta (after the bell)
  • Thursday: Apple, alphabet, Amazon, ford, Starbucks, Qualcomm (after the bell)

3. Renault intends to reduce Nissan’s stake

Renault and Nissan automobile logos are pictured during the Brussels Motor Show in Brussels, Belgium, January 9, 2020. (Photo by KENZO TRIBOUILLARD/AFP via Getty Images)

Kenzo Tribouillard | AFP | Getty Images

Two automotive titans are trying to shake things up as the industry more aggressively transitions to electric vehicles. France’s Renault and Japan’s Nissan announced on Monday that they will restructure their 1999 agreement. Under the deal, which requires the approval of their respective boards, Renault would reduce its stake in Nissan from 43% to 15% and pay out a large chunk to a French trust that would have “neutralized” voting rights. Nissan has also agreed to invest in Ampere, Renault’s electric vehicle business. The two will also work on “high value-added operational projects” in Latin America, India and Europe, they said.

4. Walmart expresses its advantages

Walmart’s flagship stores, like the one in Teterboro, NJ, are where Walmart plays many of its exclusive brands like activewear brand Love & Sports and Beautiful, a kitchen and home decor line developed with Drew Barrymore.

Melissa Repko | CNBC

Walmart has weathered the recent retail ups and downs better than many of its smaller peers, particularly Goal. Why? Because of its grocery store – the largest in the country – and its size. Even as supply chain problems and staffing imbalances squeeze margins, Walmart has still been able to rely on the strength of its inexpensive grocery offerings to attract even higher-income shoppers looking for value. The overall health and size of his business allows him to mix things up and try new things. Its sleek new store format, reminiscent to some of Target, fits right in as Walmart tries to hold on to the more affluent customers who shop at its grocery stores. The conversion is slowly being introduced, but it is already causing a stir in large metropolitan areas.

5. The latest from Ukraine

Ukrainian soldiers launch a drone near the Ukrainian town of Bakhmut in the Donetsk region on January 25, 2023 amid the Russian invasion of Ukraine.

Anatoly Stepanov | AFP | Getty Images

Ukrainian President Volodymyr Zelenskyy urged western nations to accelerate arms shipments as his country continues to face Russian missile attacks and fierce battlefield fighting. The US and Germany have pledged to send dozens of tanks to Ukraine, prompting speculation that fighter jets would be next. However, Chancellor Olaf Scholz said his nation was opposed to sending the plane to Ukraine. “The question of combat aircraft does not arise at all,” Scholz said, according to a translation of a German newspaper. Read live war updates here.

– CNBC’s Jesse Pound, Elliot Smith, Melissa Repko and Holly Ellyatt contributed to this report.

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