Big Tech Earnings and GDP Numbers for Q1 to Drive S&P 500 This Week
24 Abril 2023 - 6:40AM
Finscreener.org
After entering bear market
territory in 2022, the
S&P 500 has gained
over 8% year-to-date. Despite the recent uptick in share prices,
the outlook for equities does not look too promising in the near
term.
In fact, a recession could be
just around the corner, according to Chris Watling, the chief
executive of financial advisory firm Longview Economics. He warns
investors that they may need to brace for some turbulence in the
stock market.
Speaking on CNBCU+02019s "Squawk
Box Europe" recently, Watling claimed that a recession is on the
horizon, pointing to what he described as "pretty compelling" and
"brutally bad" leading economic indicators.
The Conference Board revealed
that its Leading Economic Index for the U.S. slipped by 1.2% in
March, reaching its lowest level since November 2020. This data
suggests that economic weakness may soon intensify and permeate the
entire U.S. economy.
Watling also noted that the
typical timeline for a recession following the inversion of the
Treasury yield curve, which first occurred in March 2022 and then
again in subsequent months, is about a year or so. "Every time
youU+02019ve had that in the U.S., youU+02019ve had a recession.
So, I think itU+02019s coming, itU+02019s on its way. ItU+02019s
just a timing issue," Watling remarked.
Big tech earnings will drive near-term
sentiment
Earnings season is in full swing,
and weU+02019re about to hear from some of the worldU+02019s
corporate giants this week! Big tech firms like
Apple (NASDAQ: AAPL), Amazon (NASDAQ:
AMZN),
GoogleU+02019s Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Microsoft
(NASDAQ:
MSFT), and
Meta Platforms (NASDAQ:
META) will be stepping up
to the plate, alongside other heavyweights such as
Coca-Cola Company (NYSE:
KO),
McDonaldU+02019s (NYSE:
MCD) and Visa (NYSE: V).
Talk about a star-studded lineup!
In Q1, just under 20% of
S&P 500 companies have shared their earnings, with 76% of
them reporting EPS above estimates. This is pretty much in line
with the trailing five-year average of 77%, according to
FactSet.
However, not all is rosy in the
land of tech. The information technology sector is among six
sectors predicted to post a year-over-year decline in earnings.
Alphabet is bracing for a potential 16% drop in net income for the
first quarter as revenue from cloud services grows at its slowest
pace since 2016.
This cloud growth slowdown could
cast a shadow over Microsoft as well, which is anticipated to
report earnings that are unchanged from a year ago.
Q1 GDP and inflation under the radar
This Thursday, the Bureau of
Economic Analysis (BEA) will publish its gross domestic product or
GDP estimates for Q1 of 2023. ItU+02019s predicted that the U.S.
economy experienced a seasonally-adjusted annual growth rate of 2%
in Q1, a slowdown from the 2.6% seen in Q4 of
2022.
The Conference Board expects
full-year GDP growth of a mere 0.7% this year, a dip from the 2.1%
in 2022, as the U.S. economy continues to grapple with relentless
inflation and the FedU+02019s hawkish monetary policy.
Speaking of the Fed, Friday is
all about the release of the latest Personal Consumption
Expenditures (PCE) Price Index - their go-to inflation barometer.
ItU+02019s anticipated that prices climbed 0.3% last month, equal
to FebruaryU+02019s pace, and soared 4.5% YoY. If true, this would
be the slowest annual gain since summer 2021.
Core prices, which exclude those
pesky food and energy costs, likely experienced a similar 0.3%
increase from February and a 4.5% jump over a 12-month
period.
Coca Cola (NYSE:KO)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Coca Cola (NYSE:KO)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024