Weekend Wall Street #48 - Huge Earnings Week Outlook

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Happy Sunday everyone and welcome back to Weekend Wall Street. The markets continued to breakout last week but closed slightly down as SPY touched $450. These next few weeks are going to be crucial in determining on how the markets will continue this $10T rally with a huge earnings season coming up.

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With what can be considered one of the most important earnings seasons of the year coming up, wall street is taking a look at how companies have been doing coming out of last year’s slump. Firms are expecting to post a 9% drop in overall profits.

The AI boom has really driven the stock market this year, with huge growth in names line Nvidia, AI, and Microsoft. The questions for this week now become: has the AI bet on efficiency paid off and what new companies are going to start using AI in order to improve their profits and efficiency. Micron said they are expecting a slowdown in the personal computer markets. A slowdown in the markets can be caused by the Fed doing more than one more 25bps rate hike before a pause. In European companies, currency movements have wall street expecting further profit declines than in US names.