Marketbites: Mixed Earnings Reports
Portfolio Manager Commentary:
The Dow Jones closed 0.31% higher as a large batch of corporate earnings provided more insight into the state of the economy. In all, the latest earnings had a batch of mixed results.
3M dropped 6.2% on disappointing guidance for 2023, while Union Pacific slipped 3.3% after falling short on estimates. The unofficial start to tech earnings began with Microsoft reporting after the bell. Boosted by strong growth in their cloud unit, Microsoft was able to beat estimates for both EPS and sales revenue.
Market gains have come despite a largely underwhelming earnings season and more signs that the U.S. economy is slowing. Some investors hope these findings will prompt a pivot from the Federal Reserve when it meets at its policy meeting next week.
Chart of the Day:
Market-based gauges of inflation expectations project the annual pace of rising prices will drop in the months ahead roughly as rapidly as during the recession that followed the 2008 financial crisis or when Fed Chairman Paul Volcker used double-digit interest rates to crush the soaring inflation of the late 1970s. Hopes for a quick return to 2% inflation have encouraged bets that the Fed will pause and even reverse its interest-rate increases this year.
Invest With Us
Download and invest with us in the Avidus app! Avidus is your "in" to directly owning a portfolio of remarkable companies. Leave Wall Street & Robo-advisors behind!