Concerns over elevated inflation, rising tensions between Moscow and the West over Ukraine, and speculation about monetary policy look set to keep investors on edge in the coming holiday-shortened week.
Here's what you need to know to start your week:
1. Diplomatic Market efforts
On Monday, the U.S. market will be closed for the Presidents' Day holiday however, investors are likely to be facing another topsy-turvy week as fears over a potential Russian invasion of Ukraine underpins demand for safe-haven assets.
Russian President Vladimir Putin and President Joe Biden of the United States have accepted in principle a French proposal for a diplomatic summit, potentially offering new how for a peaceful solution to pull Russia and Ukraine from war.
2. Retail earnings
Consumers are back in focus after a strong rebound in January retail sales. However, a string of earnings results from major retailers this week will indicate how surging inflation currently affects spending.
Among those scheduled to report fourth-quarter results during the week included Home Depot (NYSE:HD), Lowe's (NYSE:LOW), Macy's (NYSE:M), and Foot Locker (NYSE:FL). Other companies reporting earnings include Beyond Meat (NASDAQ:BYND) and Alibaba (NYSE:BABA).
3. Stock of the week
Shares of the company Crown Holding (NYSE:CCK), which makes beverage and food packaging has gained 4% last week after displaying defensive growth characteristics last month when management posted quarterly profit that surpassed estimates.
In the fourth quarter of 2021, Crown earned $1.66 a share as revenue increased 24% from the previous year to $3.05 billion with Wall Street Analysts seeing value in the company.
4. Tesla scrutiny
Tesla Inc. is facing a review in Germany over an autopilot feature, as regulatory scrutiny intensifies into the carmaker's driver-assistance technology posing a risk to Tesla's commercialization.
Last week, the U.S. National Highway Traffic Safety Administration opened its second probe into a possible Autopilot defect, while Germany's federal motor vehicle office KBA is currently investigating Tesla's automated lane-change function and whether it's approved for use in Europe.
5. Crypto's second winter
Co-founder of the Ethereum blockchain Vitalik Buterin recently said the digital-asset universe may benefit from the current retreat in coin prices that's cast a chill on investors and is being referred to as another crypto winter.
During an interview with Bloomberg Buterin said, "the people who are deep into crypto, and especially building things, a lot of them welcome a bear market." Since the last "crypto winter" in 2018, the sector has boomed with Buterin adding that a crypto winter can also help those who are building projects in crypto focus on improving the technology.
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