Forbes on Nostr: Inflation And Banks Drag Stocks Lower Despite Earnings ========== Stocks and bonds ...
Inflation And Banks Drag Stocks Lower Despite Earnings
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Stocks and bonds slumped due to rising inflation and subdued bank earnings. The S&P 500 declined by 1.5% for the week, while the 10-year Treasury yield rose from 4.4% to 4.5%. The Magnificent 7 tech stocks, including Microsoft, Meta Platforms, Amazon, Apple, NVIDIA, Alphabet, and Tesla, bucked the trend with a gain of 1%. Blended earnings for the first quarter are worse than forecasts at the end of the quarter, with a growth rate of -0.9% year-over-year. The healthcare sector was the biggest detractor from S&P 500 earnings growth, with estimates for Bristol-Myers Squibb slashed. March CPI was 3.5% year-over-year, higher than expected. The sharper rise in the supercore CPI reading may challenge the narrative that wage growth doesn't drive inflation. The odds of a June Fed rate cut fell to 30%, with a higher probability of rate cuts starting in July. The total rate cuts expected in 2024 fell to two. Bank earnings this week may be impacted by worries about future lending income and exposure to the troubled office real estate sector. Economic growth continues to support earnings growth forecasts despite inflation concerns.
#Stocks #Inflation #Earnings #S&p500 #BankEarnings #Cpi #TreasuryYield #TechStocks #HealthcareSector #FedRateCut
https://www.forbes.com/sites/bill_stone/2024/04/14/inflation-and-banks-drag-stocks-lower-despite-earnings/
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Stocks and bonds slumped due to rising inflation and subdued bank earnings. The S&P 500 declined by 1.5% for the week, while the 10-year Treasury yield rose from 4.4% to 4.5%. The Magnificent 7 tech stocks, including Microsoft, Meta Platforms, Amazon, Apple, NVIDIA, Alphabet, and Tesla, bucked the trend with a gain of 1%. Blended earnings for the first quarter are worse than forecasts at the end of the quarter, with a growth rate of -0.9% year-over-year. The healthcare sector was the biggest detractor from S&P 500 earnings growth, with estimates for Bristol-Myers Squibb slashed. March CPI was 3.5% year-over-year, higher than expected. The sharper rise in the supercore CPI reading may challenge the narrative that wage growth doesn't drive inflation. The odds of a June Fed rate cut fell to 30%, with a higher probability of rate cuts starting in July. The total rate cuts expected in 2024 fell to two. Bank earnings this week may be impacted by worries about future lending income and exposure to the troubled office real estate sector. Economic growth continues to support earnings growth forecasts despite inflation concerns.
#Stocks #Inflation #Earnings #S&p500 #BankEarnings #Cpi #TreasuryYield #TechStocks #HealthcareSector #FedRateCut
https://www.forbes.com/sites/bill_stone/2024/04/14/inflation-and-banks-drag-stocks-lower-despite-earnings/