July 2, 2022
  • July 2, 2022

Tech profits released ahead of Fed rate decision

By on April 27, 2021 0

S&P 500 Price Outlook:

S&P 500 forecast: tech profits are released ahead of Fed rate decision

The S&P 500 closed trading near record highs on Tuesday, fluctuating around highs set in Monday’s session. While Tesla earnings Monday left something to be desired with some investors, with results acceptable enough to keep risk appetite intact before the profit chain unleashed this afternoon. With a mixed set of results so far, the S&P 500, Nasdaq 100, and Dow Jones will focus on the April FOMC meeting and the earnings ahead of the rest of the big tech folks for some direction in the second half of the week.

Breakdown of S&P 500 profits

Source: Bloomberg, Margaret yang

In the meantime, traders and investors will need to decipher the reports from Google, AMD, Starbucks, Microsoft and others that were offered after the close on Tuesday..Google’s neighborhood was perhaps the most impressive of the bunch, exceeding expectations on both the top and bottom. He also announced a staggering $ 50 billion buyback program. Unsurprisingly, investors were thrilled with the quarter, with stocks immediately surging more than 5%.

Not to be outdone, AMD delivered its own impressive results, enjoy a rhythm on the top and bottom lines. AMD shares rose 3% immediately after.

Microsoft was more of a mixed bag as revenues barely exceeded expectations with a slight beating in EPS. Like Tesla before him, stocks at the top of the high-flying Nasdaq 100 often require significant quarterly outperformance to see a positive reaction given their extended valuations and sizable future growth expectations.

S&P 500 earnings chart

With earnings spread across all areas but broadly positive, optimistic sentiment will likely continue in Wednesday’s trading as investors brace for the April Fed rate decision in which no change in the rate range d. Interest is not expected, but a discussion on inflation is eagerly awaited. Many business leaders have started to express concern about inflationary pressures, a topic that is sure to be covered at the post-FOMC press conference. As the earnings season continues, follow @PeterHanksFX on Twitter for updates and analysis.

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– Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

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