40 days ago • Posted by Paul de La Baume

Still no recession, earnings outlook improves #stocks #trading $SPY

Investors face a busy week ahead in markets with many mega-cap US companies reporting such as Alphabet and Microsoft on Tuesday and Amazon on Thursday. So far, Q1 earnings are performing well with 75% of firms beating EPS consensus, by an average of 5.3%. EPS are being revised higher, suggesting worst may be in the past. In Big Tech, so far markets have already cheered at their enormous cost-cutting initiatives. We will know more about US inflation on Friday with PCE data for March. A very small decline is expected for Core PCE. Lastly, interesting to point out that the Leading Economic Index (LEI) fell for a 12th straight month, still yet WITHOUT a recession, which is unprecedented.