Earnings for the first quarter are currently 7% higher than expected. This comes amid slower growth than in previous quarters. Overall, earnings are up 8.38% and the energy sector has contributed the most to this growth.
Welcome to another edition of Trends Over Time, a quarterly chartbook from BTC Capital Management. Market and economic data are usually released in isolation. The single data point, with the occasional previous period data, is usually not enough to identify a trend or a theme.
The S&P 500 ended the week up 0.3% as earnings season comes into focus. Heavy-weight names are starting to report first quarter earnings and there have been some big moves for well-known mega-cap stocks.
Inflation continues to run hot. The Consumer Price Index (CPI) for March was released this week. The increase of 8.5% over the year and 1.2% from February to March shows a continuation of price increases.
The Federal Reserve (Fed) rhetoric was a headwind to risk assets this week. Current and former governors spoke openly about increasing interest rates in an “expeditious” manner. This leaves multiple 50 basis points hikes on the table for upcoming meetings.