Last week saw a strong rebound as investors digested the latest inflation data and early fourth-quarter earnings reports. The S&P 500 ($SPX) (SPY) closed +2.94% as optimism increases ahead of a busy earnings week.

The coming week brings several key earnings reports from major companies across different sectors, along with important economic data releases and the Martin Luther King Jr. holiday.

Here are 5 things to watch this week in the Market.

MLK Holiday Trading

Monday marks the Martin Luther King Jr. Day holiday, with U.S. stock and bond markets closed for trading. This shortened trading week could lead to increased volatility in the remaining sessions as traders position themselves ahead of key earnings and economic data.

Donald Trump will also be sworn in as the next President of the United States on Monday.

Major Earnings

This week kicks off with several heavyweight earnings reports that could set the tone for the broader market. Netflix (NFLX) will be closely watched on Tuesday after the bell, with investors focusing on subscriber growth and content spending plans for 2024. Procter & Gamble (PG) reports Wednesday morning and should provide valuable insights into consumer spending habits and inflation impacts.

Johnson & Johnson (JNJ) report on Wednesday, offering views into healthcare spending. The transportation sector also takes center stage this week with American Airlines (AAL) and United Airlines (UAL) reporting, which should provide insight into travel demand and fuel cost impacts.

Manufacturing and Services PMI

Friday brings the S&P Global Manufacturing and Services PMI data at 9:45 AM Eastern. These forward-looking indicators will be crucial in assessing whether the economy is maintaining momentum in early 2024. Manufacturing has been in contraction territory, while services have shown resilience. Any significant deviation from expectations could impact market sentiment.

Housing Market Health

Existing Home Sales data for December releases this week, providing the final snapshot of 2023's housing market. With mortgage rates having pulled back from their recent peaks, investors will be watching to see if this has translated into increased sales activity. The report could influence homebuilder stocks and related sectors.

Initial Jobless Claims

Thursday's Initial Jobless Claims report at 8:30 AM Eastern continues to be a key indicator of labor market health. Recent weeks have shown resilience in employment, but any significant increase in claims could raise concerns about economic momentum. This data becomes particularly important as the market assesses the Federal Reserve's next moves.

Additionally, traders should keep an eye on Thursday's European Central Bank meeting for any signals about potential rate cuts in 2024, which could influence global markets. 

Best of luck this week and don't forget to check out my daily options article.