Slowdown?

In this buzz: Q1 for Tesla, Netflix, BoA, Goldman, Amex; and more stocks news…

Q1
The stock market’s strong start to 2023 could be put to the test this week as more companies like Netflix, Bank of America, Goldman, Amex, and Tesla report Q1 earnings. JPMorgan, Citi and Wells Fargo helped kick off the earnings season on Friday, and despite all reporting stellar earnings, the market’s concern for the future of the economy was reflected in its lukewarm reaction.

Equities closed “meh”
… on Friday, but overall have enjoyed a great start to the year. The Dow has closed higher on the week for four weeks in a row, while the S&P and Nasdaq are up four out of the last five. Fed rate hike expectations are back on the table as the futures markets are no longer pricing in a pause in May.

Future of corporate profits
Investors and CEOs seem to be bracing for a slowdown. Aside from scrutinizing Q1 results, investors will be looking at earnings reports for direction about ❗the future of corporate profits. Guidance around profit declines or headwinds could turn the spring stock market rally around. However, if cost accounting, think Zuck’s “year of efficiency”, look like it’s working, and profits look to improve, it could be “game on” for the next leg of a rally.