New York Stock Exchange, Earnings Focus on MS, Meta, Apple, and 180 Other Companies

This week (April 28 to May 2), the New York Stock Exchange is expected to be influenced by the progress of the US-China trade negotiations. Earnings announcements from major tech companies like Microsoft (MS) and Meta are also scheduled.

Last week, the three major indices in New York closed on an upward trend as President Donald Trump of the United States managed to stabilize the market chaos following his tariff announcement. Although it is unclear whether the US and China have actually initiated trade negotiations, the fact that both countries have halted competitive tariff increases suggests that the situation may not worsen for the time being. However, there is also a counterargument that the recent rebound is merely a 'dead cat bounce' due to the significant market drop following the mutual tariff announcements, and uncertainty remains.

This week, the market is expected to focus on corporate earnings. This is because the earnings guidance from companies can provide insights into the impact of tariffs more than the earnings results themselves. Over 180 companies in the S&P 500 are set to announce their earnings. On the 30th, MS, Meta, and Qualcomm will release their earnings, followed by Apple, Amazon, and Mastercard on the 1st of the next month. According to FactSet, 76% of the companies in the S&P 500 that have announced their earnings have exceeded Wall Street's expectations, but the outlook for the second quarter and the full year is being revised downward. The expected earnings growth rate for the second quarter has fallen from 9.2% at the beginning of the first quarter to 6.6% currently.

Key indicators that market participants are watching will also be released. On the 30th, the preliminary US economic growth rate for the first quarter and the March Personal Consumption Expenditures (PCE) price index will be announced, followed by the April non-farm payrolls and unemployment rate on the 2nd of the next month. The US Gross Domestic Product (GDP) for the first quarter is estimated to have increased by 0.4% compared to the previous quarter (annualized). This is a sharp decline compared to the confirmed GDP growth rate of 2.4% in the fourth quarter of last year. The PCE price index is expected to have risen by 2.2% annually in March.

Reporter Han Kyungjae hankyung@hankyung.com