Mike Giordano, CFP®

The beginning of a new season brings new excitement. Opening day in baseball makes us dream of summer fun. Springtime in Augusta with The Masters brings fresh enthusiasm to get the clubs dusted off.  
For those of us who follow the markets, earnings season delivers that rush. Since companies report fresh results each quarter, the thrill arrives four times a year.

Each new season comes with new storylines and that’s certainly true for the markets as companies report their First Quarter earnings.

What are we looking for? In short, earnings growth and a good outlook. The markets have mostly been running on a belief that AI will bring loads of productivity growth that will power increased earnings.

So far, we’ve seen that earnings growth limited to a few mega cap tech companies, but we want to see it broaden out. We want to see–or at least hear–company execs tell us when they expect these new technologies will beef up the bottom line.

The market over the course of the last year has mostly been driving higher on investors’ willingness to pay more for each dollar of earnings. At some point, they’ll need to see earnings growth catch up.

The big banks opened up earnings season this week and the big question here: what’s the state of the consumer and current levels of lending? The banks painted a mixed picture. Some topped earnings expectations but the overall vibe was higher interest rates may continue to be a drag on lending growth as consumers and businesses pull back on borrowing.

We’re just getting started. We’ll keep you posted as earnings season rolls on.

Mike on the Money on TV

Continuing the theme of interest rates, we learned this week, rates may not be coming down anytime soon. Progress on inflation appears to be stalling after a third straight month of Consumer Price Index data showed prices remaining higher than forecast. 

On this week’s segment, we dove into what that might mean for the markets and your money.  

Okay, now you’re dialed into what’s happening on Wall Street so you can better make Main Street decisions with your money.

As always, be bold, love your life and enjoy investing in your passions!

This material is provided as a courtesy and for educational purposes only.  Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation. 

All views/opinions expressed in this newsletter are solely those of the author and do not reflect the views/opinions held by Advisory Services Network, LLC.