Earnings Season: And they are Off

The S&P 500 rebounded last week from its first week of 2024 selloff.  The S&P 500 index rose +1.8% last week, erasing its YTD decline and putting the this index into positive territory year to date.

The index ended last week at 4784, a few points up from the year end 2023 level of 4,770.  A drop in month-over-month US producer prices helped to ease investors’ inflation concerns after December’s US consumer prices rose more than expected.

JPMorgan Chase led off the Q4 bank earnings season with the report of 2023 being its most profitable year ever. Its Q4 adjusted earnings came in at $3.97 per share, besting estimates, while its revenue for the quarter also topped the Street view. Bank of America (BAC) reported adjusted earnings per share above expectations, although revenue missed. Citigroup (C) reported a quarterly loss and unveiled plans to cut 20,000 jobs.

The technology sector led the gains last week, up +4.9%, followed by a +3.4% rise in communication services. Other sectors in the green included consumer discretionary and consumer staples as well as health care, real estate and industrials.

On the downside, the energy sector fell -2.4%, followed by a -1.9% drop in utilities and a -1% decline in materials. Financials dropped -0.5%.

A number of companies will release quarterly results this week, including Morgan Stanley (MS), Goldman Sachs Group (GS), Prologis (PLD), Charles Schwab (SCHW) and Alcoa (AA).

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