The Week Ahead: Trump Davos Speech and PCE Inflation Data Release This Week

TLDR

• Markets are closed Monday for Martin Luther King Jr. holiday, with a shortened trading week ahead
• President Trump will speak at World Economic Forum in Davos on Wednesday, expected to discuss housing reforms
• Delayed PCE inflation data for October and November releases Thursday as Bureau of Economic Analysis catches up from government shutdown
• Netflix reports Tuesday amid Warner Bros. Discovery acquisition efforts, while Intel earnings follow Thursday
• Small-cap Russell 2000 hit record highs last week as market rotation continues away from Big Tech software stocks

Markets face a compressed schedule this week due to the Martin Luther King Jr. holiday on Monday. Stock and bond markets will remain closed for the federal holiday.

The World Economic Forum kicks off in Davos, Switzerland on Monday. President Donald Trump is scheduled to speak at the conference on Wednesday morning.

Trump’s address is expected to focus on housing market reforms and economic policy. He has proposed banning large institutional investors from buying homes.

The president also plans to direct Fannie Mae and Freddie Mac to purchase mortgage bonds. This move aims to lower borrowing costs for homebuyers.

The Bureau of Economic Analysis will release delayed Personal Consumption Expenditures price index data on Thursday. The report covers both October and November.

These inflation figures were postponed due to last year’s government shutdown. Federal Reserve officials will watch these numbers closely ahead of their meeting next week.

The PCE is the Fed’s preferred measure of inflation. Last week’s Consumer Price Index showed inflation continued to cool.

Earnings Season Ramps Up

Netflix reports quarterly results on Tuesday. The streaming company is working to acquire Warner Bros. Discovery.

Bloomberg reported Netflix may sweeten its bid with an all-cash offer. This would match terms from rival bidder Paramount Skydance.

Netflix’s proposal excludes Warner Bros. Discovery’s cable and news operations. Paramount’s competing bid includes those assets.

Intel releases earnings on Thursday. The chipmaker’s stock has surged about 100% since August 2025.

The rally followed news of a roughly 10% government stake in the company. Investors are watching for updates on Intel’s AI PC chip development.

United Airlines reports this week after Delta Air Lines issued a weak profit outlook. Delta’s forecast sent airline stocks lower last week.

Market Rotation Continues

The small-cap Russell 2000 closed at record highs on the final three trading days of last week. The Dow Jones Industrial Average led gains among major indexes.

The S&P 500 finished virtually unchanged for the week. The Nasdaq Composite fell about 0.4%.

Software stocks have underperformed in early 2026. Companies like ServiceNow, AppLovin, and Salesforce are down more than 12% year-to-date.

Energy and mining stocks have rallied instead. Bloom Energy is up 60% this year, while Kratos Defense has gained 64%.

Other companies reporting this week include Johnson & Johnson, 3M, GE Aerospace, and Procter & Gamble. The Supreme Court will also hear oral arguments Wednesday in Fed Governor Lisa Cook’s challenge to Trump’s efforts to remove her.

Oil prices rose less than 0.5% last week. Geopolitical headlines related to Venezuela, Iran, and Greenland continue to affect energy markets.

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