S&P 500 Companies Beat Analyst Expectations, But Year-Over-Year Decline Persists
The S&P 500 companies are performing well in terms of earnings surprises for the first quarter of 2023. It’s worth noting that most companies reporting actual results for Q1 2023 have beaten analyst estimates, and the magnitude of these surprises is above their 10-year averages.
Is The Fed Signaling Rate Cuts?
There is an expectation that the Fed will start cutting rates in the Fall, however, if the cuts are postponed, it will likely result in a significant drop in EPS estimates for the second half of 2023 and the fiscal year of 2024. This would put pressure on stock prices in the broader market.
Banking Crisis Is Spreading To Other Sectors
The Silicon Valley Bank failure is showing up in earnings reports and the fear is starting to spread to other sectors.
I know – the market took off higher on strong earnings reports at the end of last week, so what in the world am I talking about?