This week will bring closely followed inflation figures, the start of fourth-quarter earnings season while market volatility looks set to continue.

Here’s what to watch in this week’s markets:

1.  Continued market volatility

In the first week of 2022, indications that the Fed is ready to hike rates faster than anticipated as it combats the surging inflation, disturbed markets.

Last week the Dow Jones, the S&P 500, and the Nasdaq dropped 0.3%, 1.9%, and 4.5%, respectively, while The U.S. benchmark 10-year yield soared to a two-year high.

Investors have been rotating out technology-heavy growth shares into more value-orientated shares and, rising cases of the Omicron variant also contributed to the risk-off mood in markets. 

2.  Earnings season

Ahead of the market open on Friday, investors will get a look at fourth-quarter results from several large banks, including JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC), as earnings season kicks off.

According to Refinitiv data, earnings for S&P 500 companies are expected to jump 22.3%, a slower pace than was seen in previous quarters.

Investors will be eager to hear about inflation, 2022 forecasts, and whether companies believe the supply chain crunch that moved prices up last year will ease in the coming months.

3.  Zoom growth expectations

Zoom has been delivering better-than-expected quarterly results over the past two years, with revenues increasing by an impressive 35% to $1.05 billion.  

Led by strong performances across multiple geographies, the company’s ability to add large customers has, in particular, attributed to superior results. This data thus reflects a positive outlook on the company and, Zoom’s innovation of cloud-based Zoom Phone could be a market disruptor.

Proven capabilities and several launches planned by management in 2022 nicely position the company to become an indispensable platform for communication.

4.  Bitcoin under pressure

Since the beginning of the year, Bitcoin has experienced immense pressure, falling to its lowest level since late September. A wide selloff in cryptocurrencies has been fueled by concerns over the prospects of a more hawkish Fed

The global computing power of Bitcoin’s network also dropped sharply last week following the shutdown of Kazakhstan’s internet during an uprising, hitting its rapidly growing cryptocurrency mining industry.

“Liquidity in BTC has been quite thin on both sides, and there is a risk of a retreat back to the mid-30s on the short term.” – COO of Singapore crypto platform Stack Funds, Matthew Dibb.

5.  Stock of the week: EPD

Shares of the company Enterprise Products (NYSE:EPD), which operates midstream energy assets across the U.S., climbed more than 6% last week

The jump was largely driven by management boosting quarterly dividends to $0.465 a share and the company’s earnings results surpassing expectations last November.  

As revenue increased 55% from the previous year to $10.83 billion, the company had a profit of $0.53 a share in the third quarter. Enterprise also generated a record-free cash flow of $2.4 billion in the quarter.

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