Earnings Season! – Monday Morning Market Memo – July 10, 2023

Earnings Season! – Monday Morning Market Memo – July 10, 2023

Earnings Season “officially” kicks off this week.  Big banks highlight the action, with JPMorgan ChaseWells Fargo, and Citigroup all scheduled to announce quarterly results.  Away from the financial sector, we’ll be eyeing reports from Conagra BrandsDelta Air LinesWD-40FastenalUnitedHealth Group, and PepsiCo.  Looking at overall expectations….

According to FactSet: For the second quarter of 2023, the estimated earnings decline for the S&P 500 is -7.2%; if -7.2% is the actual decline for the quarter, it will mark the largest earnings decline reported by the index since the second quarter of 2020.  Keep in mind, with these low expectations for earnings, it will be easier for aggregate results to meet or exceed expectations.

Along with earnings, stock prices move based on several other factors.  Additional major drivers of stock prices include the economy, interest rates, fear, greed, momentum & psychology, along with geopolitical events/issues/concerns.

At different points in time, these factors take on varying levels of importance and impact, depending on the market environment and news/developments in these areas.  Ultimately however, and in the long run, earnings are the most important factor in determining the price of both an individual stock, as well as the overall stock market.

We know we say it (at least) every quarter, and we’ll say it again now – earnings are the mother’s milk of stock prices – get ready for second quarter 2023 earnings season!

As always, don’t hesitate to contact us with any questions or if you would like to set up a meeting.

All the best – Southport Station Financial Management, LLC