Carlsquare weekly market letter: Can Q1 earnings provide the final push to the upside?

Read the weekly letter here:

Carlsquare Weekly market letter:

• The US earnings season has already started on a positive note. With indices trading range-bound, we expect earnings to trigger another strong move. Perhaps the last push before the summer lull?
• Geopolitically, Ukraine has launched a campaign for a spring offensive against Russia. From a fundamental point of view, the liberation of Ukraine will not have a significant impact on the markets, but from a psychological point of view, it can and should have a positive impact.
• This week, the focus is on US inflation figures (CPI and PPI), but interest seems low as all eyes are on the Fed meeting in May. There could still be another rate hike. We hope it is the last one in this cycle.
• For Q1 2023, the estimated earnings decline for the S&P 500 is -6.8%. From Q2 2023, analysts expect a gradual improvement in S&P 500 earnings and revenue growth, as shown in the chart below.

Disclaimer:

The information in this presentation is based on what the publisher, Carlsquare, believes to be reliable sources. However, we cannot guarantee its content. Nothing in the presentation should be construed as a recommendation or solicitation to invest in any financial instrument, option, or the like. Opinions and conclusions expressed in the presentation are for the recipient’s use only. The contents may not be copied, reproduced, quoted, or distributed to anyone else. Carlsquare shall not be liable for any loss arising from any decision taken based on the information contained in this presentation. Past performance should not be taken as an indication of future results. Changes in foreign exchange rates may affect the value, price or income of an investment made abroad or in a foreign currency.

The analysis is not directed at U.S. Persons (as that term is defined in Regulation S under the United States Securities Act and interpreted in the United States Investment Companies Act of 1940), nor may it be distributed to such persons. The analysis is not intended for natural or legal persons where the distribution of the analysis to such persons would involve or entail a risk of violation of Swedish or foreign laws or regulations.