Earnings season kicked off this morning and will continue for the next six weeks or so.  This is the time each quarter when corporations report their revenue and earnings from the previous three months and often provide guidance for the current quarter.  Frequently, outlooks are even provided for the full year.

As fundamental investors, we welcome this period for the hard data it provides. It gives us an opportunity to evaluate company performance and compare it against expectations.  However, due to ongoing macroeconomic uncertainty, over the last couple of quarters, many corporations have offered little more than opaque guidance, if any.  Still, investors will be listening closely for any clues about what lies ahead at the individual stock and sector levels, as well as for the market in general.

Beyond earnings, this week is packed with meaningful macroeconomic data as well.  This morning, CPI (Consumer Price Index) was reported.  So far, inflation has not run as much as feared.  Over the coming days, PPI (Producer Price Index), the Import Price Index, housing data, the Fed’s latest Beige Book report, and preliminary sentiment from the University of Michigan surveys are to be issued.  Imagine the Fed will likely take all of this into consideration when it reconvenes at the end of the month at its next FOMC meeting.

Over the coming weeks, we should have a clearer picture of the economic environment, corporate health, and investor sentiment than we do today.  That said, markets remain sensitive to headlines, including ongoing tariff negotiations, shifting rhetoric, as well as geopolitical developments, which can ebb and flow with the data and ever evolving outlook.

Honored and thankful for being on this journey together.  Here, if you need anything.