Market Drama

Welcome to this week’s Market Drama!

• The S&P 500 was down 1%.
• Nasdaq was down 2.4%. 
  • Big drivers were: earnings and some comments by the Fed. 
• Asset class highlight: oil was up 8.7%, inching towards $80 per barrel. 
  
  • Russia announced they are going to cut roughly 5% of their total production every day. 
• Earnings: 
  • 69% of the S&P 500 have now reported. 
  • Roughly 70% of those companies have reported better-than-expected earnings. 
    • The average is 77%, so that’s lower than usual. 
  • The expectation for the next two quarters has come down. 
    • Forecast is now calling for -5.1% growth in the first quarter of 2023, and -3.1% year-over-year growth in the second quarter.
• The Fed: 
  • There was a speech that Fed Chairman Powell gave last Tuesday that drove the market lower. 

When it comes to this week: 

• Keep an eye on for CPI. 
  • Core expectations year-over-year of 5.4, prior month was 5.7. 
• On the earnings front, we have 61 S&P 500 companies, so we are kind-of getting to the tail end of earnings season. 

Stay tuned for next week. 

– Andres