"There will be a lot to digest from both this week and next week, and the story of 2Q23 still has plenty of opportunity to evolve," Calvasina added. The bottom-up consensus forecast for the S&P 500 is still tracking at around $219, but the anticipated growth rate has cooled a bit for the full year." "2023 EPS forecasts for the S&P 500 are slipping. The percent of companies beating consensus on EPS is tracking lower in 2Q23 than 1Q23 for the S&P 500," Calvasina, the bank's head of U.S. "Beats have been a little harder to come by. RBC Capital Markets' Lori Calvasina noted that the earnings season thus far has been somewhat lackluster, which could spell trouble for the market as it tries to build on this year's strong gains. "A surprise tweak to by the BOJ would likely see USD/JPY trade lower temporarily, and policy guidance beyond the fully priced 25bp ECB hike for June poses 2-way risk for the EUR," said Cabana. Upcoming announcements from the European Central Bank and the Bank of Japan will likely be larger foreign exchange market drivers, he added. This- along with some dovish signals related to the ECB and BOJ- has contributed to the USD's partial retracement over the past week," Cabana added. "That said, overall US economic data across the spectrum has generally remained resilient. rates strategy at the firm's global research division, wrote in a Tuesday note. "The USD has already depreciated notably coming into the meeting on back of the highly publicized soft June CPI report and first downside miss in NFP in 15 months," Mark Cabana, the head of U.S. With the markets largely expecting a 25 basis points rate increase at the Federal Reserve's July meeting, the decision will likely not have much of an impact on the U.S. Discovery and Fox and underweight call on Paramount. Still, he kept his overweight rating on Disney, equal weight rating on Warner Bros. "While it remains a talent driven industry and we believe premium talent will continue to extract premium economics, the allocation of the remaining profit pool and the impact on long-term streaming and studio margins are uncertain and less likely to be clearly evident in results," he added. "Beyond that risk, there is potential that studio and streamer profit margins are reduced as part of a future settlement." "The most apparent risk for investors in these companies is a long-term shutdown in production, perhaps lasting all year, putting increased uncertainty over 2024 content across streaming, linear, and film," Swinburne said. He called the strikes a "highly visible manifestation of the stress in the ecosystem and add additional uncertainty," while noting consolidation and re-bundling while be likely in the longer term. Pressures from the dual Hollywood strikes and maturing streaming field will likely pressure large entertainment companies - and a long-term work stoppage is one of the biggest threats to their investors right now, according to Morgan Stanley.Īnalyst Benjamin Swinburne lowered some estimates for Disney, Warner Bros. CNBC's Gina Francolla contributed to this report. However, not all earnings news was positive as Microsoft slid 3.7% a day after reporting slowing cloud revenue growth. Also, Dow component Boeing gained 8.7% after reporting a second-quarter beat following a rise in commercial aircraft deliveries. On the bullish side, Google-parent Alphabet rose about 5.8% as cloud revenue growth helped propel the company to a better-than-expected quarter. Still, Powell's emphasis that the central bank would be "data-dependent" left traders torn about the central bank's next move and weighed somewhat on market sentiment. Bank shares including Wells Fargo gained after the comments as traders bet that the economy could skirt a recession if the Fed stays on hold. And I would also say it's possible that we would choose to hold steady and we're going to be making careful assessments, as I said, meeting by meeting," said Powell at a press conference following the decision. "I would say it's certainly possible that we will raise funds again at the September meeting if the data warranted. However, Treasury yields slid after Fed Chief Jerome Powell suggested the central bank could pause again here. The Federal Reserve raised rates to their highest level in more than 22 years after passing through a much-anticipated quarter point hike at the conclusion of its meeting. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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