Into Earnings Season – Monday Morning Market Memo – April 15, 2019

Good morning,

Earnings season kicked off last week, and JPMorgan Chase took center stage, rising over 4% after it reported better-than-expected earnings and revenues. Another stock in the spotlight last week was Walt Disney Co, which rose over 11% on Friday, although that was because it announced a new streaming service, and not due to earnings. Fastenal shares hit a new high after posting an earnings beat, and their report encouraged market Bulls as the industrial and construction supplies distributor has broad exposure to economically sensitive sectors. The earnings action really picks up in the week ahead, with over 40 S&P 500 companies scheduled to report results.

Companies scheduled to report earnings this week include Citigroup, Goldman Sachs Group, International Business Machines, Bank of America, Johnson & Johnson, PepsiCo, Morgan Stanley, United Health Group, American Express, Intuitive Surgical, Union Pacific, Honeywell, Schlumberger and Phillip Morris International. According to data from FactSet, first quarter earnings are expected to decline 4.3%, and that would be the first year-over-year earnings decline for the Standard & Poor’s 500 Index since the second quarter of 2016. Investors are hoping however that low expectations along with an accommodative Federal Reserve will keep the recent market uptrend intact.

We are expecting an action packed week with so many big name earnings reports due out. Investors will get a day off to recharge though, as the financial markets are closed Friday in observance of Good Friday. We hope you all enjoy the upcoming holiday weekend!

All the best,

Southport Station Financial Management, LLC