Results for: Earnings Season

The week of April 18-21, 2023, marks a pivotal juncture in the earnings season, with about 160 S&P 500 companies scheduled to disclose their financial results. Among the highly anticipated reports are those from Apple, Amazon, McDonald’s, Pfizer, and Coca-Cola. As of Friday’s market close, over 200 S&P 500 members had released their first-quarter earnings, with 80% surpassing analyst expectations. However, tech titans like Meta Platforms and IBM have recently stumbled after announcing their financial performance.

CNBC’s ‘Mad Money’ host Jim Cramer highlights the significant events that will influence market movements in the coming week. These events include the highly anticipated Consumer Price Index (CPI) data, the Federal Open Market Committee (FOMC) meeting, and several major earnings reports from prominent companies.

The CNN Money Fear and Greed index showed some improvement, but remains in the “Fear” zone. The S&P 500 closed slightly higher, while the Dow Jones and Nasdaq Composite gained marginally. Tesla shares jumped 12% after strong earnings, while Boeing fell 2.9% following financial results. Over 25% of S&P 500 companies have reported quarterly results, with 79% exceeding estimates. Most sectors closed positive, with consumer staples, consumer discretionary, and utilities leading the gains. Dow Jones, S&P 500, and Nasdaq Composite closed with mixed results. Investors await earnings from Caterpillar, Alphabet, Intel, and Microsoft today.

Prashant Bhayani, an experienced investment professional, recently shared his views on the current economic landscape, offering valuable insights on monetary policy and the upcoming earnings season. His expertise in Asian markets makes his perspectives particularly relevant to investors in the region.

UBS analysts have released a snippet on US stocks, projecting the strongest quarterly earnings growth in over two years. While the earnings season is still ongoing, UBS notes that earnings have surpassed estimates by 8.3% thus far. This is a significant improvement over the 9.7% growth witnessed in Q3 2021, marking the most robust performance since then. UBS anticipates further improvement in Q1 earnings as more data becomes available.

U.S. stocks ended Wednesday’s session with mixed results, with the S&P 500 edging up marginally, the Dow Jones Industrial Average slipping slightly, and the Nasdaq composite gaining a fraction. Tesla surged over 12% after announcing accelerated production plans for affordable vehicles, offsetting a 55% profit decline in its latest quarterly report. Meanwhile, bond yields rose, putting pressure on stocks. Other notable market moves included declines in Norfolk Southern, Boeing, and Teledyne Technologies, while Hasbro, Texas Instruments, and Boston Scientific posted gains. International markets exhibited mixed performances, with Japan’s Nikkei 225 jumping 2.4% as the yen weakened against the dollar.

Canada’s S&P/TSX composite index closed down 138 points, erasing gains from the previous day. In the US, the Dow Jones industrial average declined, while the S&P 500 and Nasdaq composite indexes rose. Earnings optimism from Tesla faded as uncertainty over interest rates prevailed. US Treasury yields rose ahead of earnings reports from major tech companies and key economic data releases. Most US companies have exceeded earnings expectations, indicating consumer strength. However, inflation concerns and successive data surprises have dampened hopes for imminent interest rate cuts. In Canada, rate cuts are anticipated, potentially affecting the loonie’s value. The Bank of Canada’s governing council remains divided on the timing of interest rate reductions.

U.S. stocks finished with a mixed performance on Wednesday as the momentum eased after sharp movements. The S&P 500 remained nearly unchanged, while the Dow Jones Industrial Average slightly declined. On the other hand, the Nasdaq composite managed to edge higher. Tesla’s jump of 12.1%, driven by plans for affordable vehicle production, overshadowed its 55% profit drop. Focus remains on the “Magnificent Seven” stocks’ earnings reports, with the hope of broader profit growth. A strong economy may support corporate profits, but rising Treasury yields continue to exert pressure on stock prices.

Stocks ended a volatile Wednesday mixed, with the Nasdaq Composite and S&P 500 posting modest gains while the Dow Jones Industrial Average slipped slightly. Tesla (TSLA) led the gainers, soaring over 12% after the company announced plans for an accelerated launch of its lower-cost vehicle. Texas Instruments (TXN) and Humana (HUM) also posted solid gains after reporting better-than-expected earnings. Boeing (BA) plunged to a 17-month low after disclosing a first-quarter per-share loss and burning through $4 billion in cash. Meta Platforms (META) is expected to release its earnings after Wednesday’s close, following news that Congress passed a foreign aid bill that includes a potential TikTok ban. The TikTok ban has raised concerns about China’s potential misuse of American user data.

Analysts believe the fintech sector may see renewed growth as earnings season continues. The Global X FinTech ETF (FINX) has been underperforming the broader market but is showing signs of a breakout. With several fintech companies reporting earnings in the coming weeks, FINX could benefit from positive results and a potential rebound in the sector’s fortunes.