According to strategists, markets are extremely pessimistic ahead of Friday's U.S. Q4 GDP report.
The consensus is looking for economic growth to show an annualized decline of 5.5%, but markets could receive an even more dire report. Brian Dolan, chief currency strategist from Gain Capital Group, said markets appear to be prepared for a fall of -6.0%.
He said because the data are somewhat backwards looking the impact could be limited.
"We know the fourth-quarter sucked wind," he said. "There isn't a lot of change to surprise markets tomorrow unless it is a really bad number."
Turning north of the border, Canada will also release GDP data, but for November. Economists are expecting Canadian GDP to show a decline of 0.4% for the month.
Eric Lascelles, chief economics and rates strategist at TD Securities, said the Canadian data will probably be overshadowed by the U.S. report.
It will also be another big day for earnings with ExxonMobil and Procter Gamble reports expected to be released.
All times in EST:
Friday:
8:30 CA Gross Domestic Product (M/M) November Exp: -0.4% Prior: -0.1%
8:30 US GDP (Q/Q) (Y/Y) 4Q Advance Exp: -5.5% Prior: -0.5%
8:30 US Personal Consumption 4Q Exp: -3.5% Prior: -3.8%
8:30 US GDP Price Index 4Q Exp: +0.4% Prior: +3.9%
8:30 US Core PCE (Q/Q) 4Q Exp: +1.0% Prior: +2.4%
8:30 US Employment Cost Index 4Q Exp: +0.7% Prior: +0.7%
9:45 US Chicago Purchasing Manager January Exp: 34.9 Prior: 34.1 Revised: 35.1
10:00 US University of Michigan/Reuters Confidence January Final Exp: 61.9 Prior: 61.9
10:00 US NAPM-Milwaukee January Prior: 30
Expected Q4 company earnings per share for the week starting Jan.30:
ExxonMobil Corporation (XOM) EPS 1.47
Honda Motor Co. Ltd. (HMC) EPS N/A
Honeywell (HON) EPS 0.97
Procter & Gamble Company (PG) EPS 1.58
By Neils Christensen
©CEP News Ltd. 2009