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“Life is a helluva lot more fun if you say yes rather than no” – Richard Branson
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
There’s little action going on in equity futures this morning as the market looks to close out what was an important week in terms of economic and earnings-related data on a positive note. Heading into the final session of the week, the Nasdaq is up 1.5% week to date while the S&P 500 is up a more modest, but still respectable 0.60%.
There are only a handful of earnings reports this morning, but some of the more notable ones were 3M (MMM), American Express (AXP), Charles Schwab (SCHW), and SLB. All four companies managed to top expectations on both the top and bottom line, continuing what has been a positive start to the Q2 earnings season. On the economic calendar, we’ll close the week with Housing Starts and Building Permits at 8:30, followed by Michigan Confidence at 10.
As mentioned, it was a significant week for economic data, particularly in terms of inflation, and the results came in just about as good as anyone could have hoped for. Of the nine different major metrics for the week, the only one that came in higher than expected was headline CPI on a y/y basis.
While most of the inflation-related data came in lower than expected, other data for the week were nearly across the board better than expected. Not a single report missed expectations, and the only reports that didn’t top expectations were Business Inventories and Homebuilder Sentiment.
We’re only a week into earnings season, but the reporting period has gotten off to a strong start. 89% of the more than 75 companies that reported earnings this week topped EPS forecasts, and 79% exceeded sales estimates. Relative to the average EPS and sales beat rates over the last one and ten years, as well as going back to 2001, the readings for this earnings season are significantly better than expected.
