Coffee With Greta: Traders Await Earnings

DJIA Futures: +31 (+0.1%)

SPX Futures: -1 (-0.01%)

NASDAQ Futures: -11 (-0.1%)

Good morning friends!

Futures are flat as traders look ahead to big earnings later this week.

Let’s get right to it!

Big Earnings Week

Q1 earnings season will pickup steam this week with more big banks and some big tech names on the calendar.

Here are the major companies reporting results this week:

Tuesday: Bank of America (BAC), Goldman Sachs (GS), Netflix (NFLX), United Airlines (UAL)
Wednesday: Morgan Stanley (MS), IBM (IBM), Tesla (TSLA)
Thursday: AT&T (T)
Friday: Procter & Gamble (PG)

This earnings season is expected to show lower profits overall as consumers pull back on spending amid to persistently high inflation pressures.

Traders are also focused on future outlooks to gauge how companies expect the economy to shift over the next few months.

Charles Schwab (SCHW) shares are up 0.7% ahead of the open after beating Q1 profit expectations.

Here’s how the brokerage’s results compared to analysts’ estimates:

The CEO said investor sentiment “remained bearish” during the quarter and the bond markets reflected “growing fears of an economic downturn”.

A key manufacturing gauge unexpectedly jumped into positive territory this month.

The New York Fed’s Empire State manufacturing index jumped 35.4 points to 10.8.

That topped economists’ expectations for a reading of negative 15.

Any reading above zero indicates improving conditions in the manufacturing sector and this is the first positive reading in five months.

The new orders index soared 46.8 points to 25.1, the shipments index jumped 37.3 points to 23.9, and unfilled orders rose 6.7 points to 0.

But employment and hours worked both declined for the third month in a row.

Treasury Secretary Janet Yellen believes the recent banking crisis will take some pressure off of the Fed on inflation. In a CNN interview over the weekend said, “Banks are likely to become somewhat more cautious in this environment. We already saw some tightening of lending standards in the banking system prior to that episode, and there may be some more to come.” She said that tightening “could be a substitute for further interest rate hikes that the Fed needs to make.”