Transcript:
Tom Vaughan:
Everybody, welcome to Monday, the S&P 500 was down a grand total of point zero 2% today, so basically flat for the day. But it was a very choppy day, lots of up and down between, you know, positive and negative today, the markets waiting for earnings. In my opinion, we got a pretty busy week with a lot of earnings coming out. Only 7% of the S&P 500 has released earnings. So far. Having said that, of those 77% of those companies have exceeded their expectations so far. So that’s fantastic. So we’ll see how this plays out. We are taking a look at all kinds of different things in these earnings right now, you know, what are the margins are they being compressed by inflation, what’s the forward guidance, a lot of things that they can talk about their negative here with gas prices and inflation, wage, inflation and those types of things, supply chain issues out of China. So we’ll see how they talk about what’s going on in a forward motion. As far as that goes. We did see last quarter, the reports coming out the market was kind of choppy, nothing too spectacular until we got to kind of the tech earnings, they did a great job of delivering the earnings market made a little run in there, which was kind of nice. So we’ll see what happens this time, I suspect we will see some compression of you know, earnings over year over year compared to last year, just because we saw some decent earnings in the first quarter of last year. And so things probably won’t be flying up or down as much as they were. But still, you know, exceeding expectations, I think is somewhat important.
Remember the market is looking forward, you know, 6 to 18 months for the most part. So a lot of the expectations for where the earnings are right now have already been kind of priced into the market. And maybe about 75% of that gets priced in the other 25% is dealing with the reality of what actually gets reported or what actually happens and whatever that scenario might be. So, you know, oftentimes when you do exceed expectations and the expectations are priced in, you’ll get some run on that. Unless the forward guidance is just really negative. As far as that goes. We did see semiconductors run really hard today. Even though the market was kind of vacillating. They were up all day. Some very positive reports came out talking about the demand issues, things that I’ve been talking about for quite a while. But semiconductors have been struggling so far this year, we’ve been dollar cost averaging into them all the way through with these rebalancing pieces we do so hopefully that turns around and starts going and gets things moving courses, they report earnings that can help also because they do think they’re doing quite well. So nonetheless, interesting day, of course, this week is going to be more about what happens with the earnings most likely. So we’ll continue to talk about some of that but look forward to seeing what’s going to happen tomorrow. Thank you very much.