4.22.24: Earnings Season Expected to Boost Indices

For Public Readers: Weekly Key U.S. and China brief market notes by Larry Cheung's Analyst Staff Team for our Public Email List

Apr 22, 2024

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In our emails, we will provide the following coverage points:

Brief Overview of U.S. & China Markets
Macro Chart in Focus
U.S. & China Upcoming Economic Calendar
Chart That Caught Our Eye

U.S and China Markets Brief Snapshot 🇺🇸 🇨🇳

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S&P 500 Index:

KWEB (Chinese Internet) ETF:

Analyst Team Note:
With earnings season kicking into gear this week with results from Big Tech giants, nearly two-thirds of Bloomberg’s survey said they expect earnings to give the S&P 500 benchmark a boost.
Nearly 78% of companies that have reported already have surpassed expectations, the largest share since 2021.

Macro Chart In Focus

Analyst Team Note:
Since 1999, the S&P 500 has risen 67% of the time between between the days JPMorgan and Walmart report results, the unofficial beginning and end of earnings season, according to data compiled by Bloomberg.
Upcoming earnings reports from US corporate giants offer the market an opportunity to flip green after three straight losing weeks by the S&P 500, the longest streak since September.

Upcoming Economic Calendar

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U.S Economic Calendar (Upcoming Data Points)

China Economic Calendar (Upcoming Data Points)

Analyst Team Note:
Despite signals from the Conference Board’s LEI and an inverted yield curve, the U.S. economy has remained unexpectedly robust more than two years after the Federal Reserve began raising interest rates.
A key factor in defying these recession forecasts has been consumer behavior; although retail sales growth briefly dipped negative last summer, it has since rebounded.
Economists attribute this resilience to the underestimated impact of pandemic-related financial relief measures, such as prolonged low interest rates and stimulus checks, which allowed households and businesses to secure low borrowing costs and bolstered consumer spending beyond initial expectations.