MarketBeat Minute(2023-01-31)

Equity markets began the week in retreat as investors brace for a big week of earnings, economic data and the FOMC. This is the first hectic week of the earnings season and should see more than 100 reports from S&P 500 companies cross the wire. The takeaway for the season so far is that earnings are weak, and the outlook is souring. The economic data may not help; it should show continued strength in the labor market and rising wages to underpin inflation.

The FOMC meeting is the big news of the week. The Fed will release its policy statement on Wednesday and will most likely shock the market. The committee isn't likely to raise rates faster than 25 bps, but it will most likely give a hawkish statement that leaves little room to doubt their seriousness. Anything less will give the market and the economic reason to accelerate, which could drive inflation to new heights.