The January 24 week has a variety of economic data on the calendar, but it is probably the first estimate of GDP for Q4 2010 that will get the most attention. Fed policymakers hold a two-day meeting to update their forecasts and help Chairman Ben Bernanke prepare for his upcoming
semi-annual monetary policy testimony.
Fourth quarter earnings season also continues with a packed calendar and many of the reports are in the transportation and energy sector, as well as for pharmaceuticals and other large manufacturing companies.
The governors of the Bank of Japan will meet on Monday and Tuesday. The Bank has an easing bias, although no action is expected at this session.
The FOMC meets on Tuesday and Wednesday, the first meeting of the Committee in 2011 and the one at which the next rotation of FOMC voters will take place. The Committee is expected to maintain the current policy of Large Scale Asset Purchases by a majority vote.
New orders for durable goods for December on Thursday should reflect a rise in orders for civilian aircraft and increased demand for motor vehicles, as well as more broad-based gains from other components as the factory sector picked up some steam. The Richmond Fed's Manufacturing Survey comes on Tuesday and the New York and Philadelphia reports have already suggested that...read more