Results for: Earnings Season

The S&P 500 Index has declined -5.5% since March 28, highlighting a rotation away from Nasdaq 100-oriented stocks and mega-cap stocks. The equal-weighted S&P 500 Index (RSP) is now outperforming the capitalization-weighted S&P 500 Index. The Magnificent 7 socks have outpaced the S&P 500 Index since the beginning of the year but have recently pulled back, with an average stock return down -9.0%. While the market is oversold in the short term, further weakness may occur. Earnings season is in full swing, and company outlooks will be an important indication of the views on the year ahead and company views on the economic outlook ahead.

Stock markets experience a mix of gains and losses during midday trading. General Motors surpasses expectations and raises its forecast, while JetBlue lowers its projections, leading to a significant drop in its share price. PepsiCo reports strong earnings but maintains its full-year outlook. Several other companies, including GE Aerospace, Novartis, Cleveland-Cliffs, Nucor, Danaher, Spotify, Sherwin-Williams, Roblox, Sunnova Energy, LKQ, and MSCI, also witness fluctuations in their share prices.

Wall Street is preparing for a busy day in the markets with the release of numerous corporate earnings reports from key players. Futures for the Dow Jones Industrial Average and S&P 500 have opened with slight upticks. General Motors reported strong first-quarter results, boosting its stock price. PepsiCo shares remain flat despite exceeding revenue expectations, while JetBlue faces a drop after disappointing sales and a lowered revenue outlook. Tesla, which has experienced a significant stock decline this year, is set to release its financial results after the market closes. The Federal Reserve’s recent statements have reined in expectations of interest rate cuts, putting pressure on companies to deliver solid profits and revenue growth.

Stocks gained Tuesday on anticipation of earnings reports from a third of the S&P 500 companies this week, with tech stocks leading the charge. However, analyst Lawrence Fuller believes broader market strength is crucial to sustaining the bull market and economic expansion. He sees a rotation from tech to non-tech sectors, potentially limiting gains for the major market averages. Friday’s Personal Consumption Expenditures (PCE) inflation data will also be crucial in shaping the market’s direction, with expectations of a decline in the core rate to 2.7% in March. The Fed’s continued commitment to rate cuts this year contrasts with some market skepticism, but Fuller believes the economy will face the impact of tighter monetary policy in the coming quarters, leading to a slowdown in consumer spending growth. He emphasizes the need for the Fed to start lowering rates to cushion the economic impact.

Wall Street’s mood turned cautious on Tuesday as investors braced for earnings reports from seven major companies that have driven much of the market’s gains this year. The so-called ‘Magnificent 7’ includes Tesla, which reported after the bell. Positive earnings and optimistic commentary from these companies could buoy the market, while weak results or a negative outlook could spark further declines. Despite a positive start to the trading week Monday, stocks ended off their highs as focus shifted to the upcoming earnings reports.

US markets have continued their downward trend despite strong earnings reports from tech and financial giants. Investors remain cautious due to concerns about inflation, Fed commentary, and a realization that interest rate cuts may be delayed. While companies like Goldman Sachs, Morgan Stanley, United Airlines, Taiwan Semiconductor Manufacturing, and Netflix have exceeded expectations, overall guidance and commentary have been more cautious. Investors are reacting more to tepid CEO commentary than actual results, highlighting uncertainty in the current economic climate. Big tech companies, known as the “Magnificent 7,” are set to release earnings this week, including Tesla, Meta, Microsoft, and Alphabet. Intel is also expected to post strong growth due to demand for generative AI products.

Asian stocks rose on Tuesday, tracking Wall Street’s gains as investors awaited earnings reports from US tech giants. The MSCI Asia-Pacific ex-Japan index rose 0.5%, led by a jump in Taiwanese and Hong Kong shares. However, Chinese shares fell, with blue chips losing 0.6%. On Wall Street, big tech stocks performed well ahead of their quarterly results, with Nvidia, Amazon, and Alphabet gaining. Meanwhile, the Japanese yen fell to fresh 34-year lows against the US dollar, pressured by the widening interest rate gap between the US and Japan.

As the market rebounded on Monday, CNBC’s Jim Cramer observed positive stock performances but emphasized that Big Tech earnings reports this week will be crucial in determining the longevity of the rally. Chipmaker Nvidia experienced a significant rebound, rising 4%, following a 10% drop on Friday. However, Cramer cautioned that despite the recovery, Nvidia may not fully recover from its recent losses. Investors are closely monitoring the upcoming earnings reports from companies like Tesla, Meta Platforms, Microsoft, and Alphabet to gauge whether the tech sell-off will continue or subside.

Tech giants brace for earnings reports while grappling with internal turmoil, layoffs, and AI scrutiny. Google’s finance restructuring and employee protests coincide with a market downturn, raising investor concerns. Tesla faces declining sales and layoffs, while Meta’s AI rollout faces scrutiny. Alphabet consolidates AI teams and grapples with employee discontent, and Microsoft’s OpenAI partnership prompts EU antitrust scrutiny.

Meta Platforms (META) is expected to release its first-quarter fiscal 2024 results on April 24th after the market closes. The company’s strong earnings estimates and positive earnings revision activity indicate a high probability of beating estimates. This has attracted attention to ETFs with significant exposure to Meta Platforms, including XLC, FCOM, VOX, IXP, and SOCL.