Happy Monday! Given the extreme cold we have experienced the last few days, It’s worth noting that spring is a meager 54 days away!
Markets opened mixed this morning ahead of a busy week of earnings, Fed speak, and data reports. Names set to report this week include: Microsoft, Meta, Tesla, and Apple, with some 1/3 of all S&P 500 companies set to report earnings throughout the week. We also get the Fed’s latest interest rate decision on Wednesday which is expected to show no change as markets are pricing the first cut in July with ~2 cuts total by year-end. Somewhat out of the blue, Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income, has emerged as a top contender for the next Fed Chair. Regardless the nominee, I do think rates will trend lower over the year which will likely be a tailwind for stocks. I am also focused on Japan and the value of the Japanese Yen as it relates to the Yen-carry trade (process where investors borrow Yen cheaply and invest it into higher yielding assets abroad). JGB yields have been more volatile of late and while I don’t see it as an imminent threat, I do think it could fuel negative sentiment near-term. Overall, I think earnings will prove resilient as we continue to see this market broaden out. I also think larger tax refunds will ultimately feed into corporate bottom lines as the year continues. Please reach out with any questions or comments.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Have a great week and stay warm!