Investors are still in the early stages of evaluating how the future higher rates and weak or negative economic growth are likely to impact corporate earnings in the next two to three quarters.
Stocks were in a holding pattern after corporate earnings barely met lowered expectations. Economic data this week also suggested labor market tightness but slowing economic activities in many sectors.
Investors were on alert after more companies declined to provide earnings guidance and reported weakening margins. The latest earnings worries added to the long list of worries ranging from economic slowdown to rate path and terminal rate levels and stress in regional banks.
Economic growth jitters were compounded by weak earnings from leading corporations dented market sentiment on Wall Street. Investors stayed on the sidelines and tech stocks dropped after Tesla and Seagate Technology reported earnings shortfall.
Benchmark indexes rebounded from morning losses and investors digested another batch of mixed earnings. Regional banks remained in focus but worries of deposit outflow ebbed.
Benchmark indexes struggled after rate path worries resurfaced amid a mixed batch of earnings. Home mortgage applications plunged as first time home buyers struggled with rising home prices and higher interest rates.
Investors digested a fresh batch of earnings and Bank of America benefited from the rise in net interest rate margin but Goldman Sachs revenue and earnings fell following the weak corporate merger activity.
Stocks retained positive bias as investors reacted to latest earnings. Commodities traded higher after China reported faster-than-expected rebound in economic growth in the first quarter.
Leading banks reported strong results in the first quarter but JPMorgan and Citigroup lifted estimates of loan loss provisions. Stocks were on the defensive after the March report showed an unexpected decline in retail sales but benchmark indexes closed up for the week.
Stocks turned lower after nominal retail sales fell unexpectedly in March. Leading banks reported a rise in revenues powered by higher interest rates and sustained demand for loans from businesses and consumers and signaled a healthy banking system.
Tech stocks led the charge on Wall Street after two reports suggested waning inflation pressures. Airlines advanced on the expectations of rising demand for summer air travel and investors are awaiting earnings from leading banks on Friday.
Stocks traded higher on Wall Street after the second inflation report confirmed the cooling inflation trend. Despite the weakening price pressures, inflation is still too high and real interest rates are still negative.
Consumer price inflation cooled for the ninth month in a row after energy prices declined and used car prices eased from elevated levels. Stocks traded in a tight range as focus shifted to wholesale inflation data Thursday and bank earnings on Friday.
