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Revenue, inflation fears և Fed meetings create a busy market week

Concerns over higher tax: inflation pushed the S&P 500 to its first weekly loss since mid-March last week, but started on Monday where it ended that week with higher stock movements.

What is happening: Although traders are mostly looking at the past of inflation, even last week the IHS-Markit Purchasing Managers Index showed another record price, but the company’s executives did not.

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On the other hand: Revenues have been better than expected so far, but feedback has been muted. According to data compiled by Bloomberg, more than three-quarters of the S&P 500 companies that have performed so far have surpassed analysts’ estimates, however, the S&P gained only 0.2%, while the Dow closed 0.2% lower.

  • The S&P 500 is set to report a net profit margin of 11.6% for Q1, the third-highest net profit margin reported by the index since 2008, when FactSet began to lag behind this figure, lagging behind only 2018. in the 3rd quarter (12.0%) և Q2 2018 (11.7%).

What to watch? Investors are also expecting profits from Amazon, Facebook and Apple to reach the end of this week, although Tesla shares fell after Monday’s call for stronger-than-expected figures in its report.

  • “We’re getting ready for a busy week,” Chris Larkin, chief executive of E-Trade Financial, told Bloomberg.

  • “Large technological revenues, the outlook for Q1 GDP ումը the meeting of the FD can be a catalyst for market movements. “Despite the strong earnings reports we’ve seen so far, the market is really booming against the backdrop of high ratings.”

Asset managers continue to warn that the stock valuation looks alarmingly high, but as I wrote yesterday, the biggest risk to investor returns in 2021 so far has been the sale.

  • The S&P 12-month price-to-earnings ratio is currently at 22.3, which is higher than its 5-year average (17.9) և its 10-year average (16.0), և it again is approaching the last points observed during the bubble point.

What’s next? The Fed begins its two-day political meeting today, with the market largely expecting Jer Jerome Powell to double his double word that the economy is improving but still demanding 0% interest rates, $ support for $ 120 billion a month in bond purchases.

  • However, investors will look back at any sign that the central bank may start cutting or shrinking the plan earlier than planned.

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