Earnings not as gloomy


Thoughts on Week Ahead:
Week 1 May 2023

Earnings not as gloomy
Last week's earnings reports from major tech companies, including MSFT, GOOGL, and META, exceeded expectations and suggest that consumer spending may not be as weak as previously thought. This positive news could potentially boost sentiment in the equities market.

Recent data on the Consumer Price Index and related indicators indicate that inflation may be reaching a plateau. Additionally, there are concerns about a potential economic slowdown in the fourth quarter of 2023. As a result, we anticipate that the US Federal Reserve will likely announce one final 25bps rate hike in the current cycle at the upcoming FOMC meeting.

From a technical standpoint, the S&P 500 has managed to stay above a key resistance level. Despite a relatively weak reading, the volume-based momentum indicator Fund Flow Index (FFI) remains in positive territory. This combination of factors suggests that the S&P 500 may continue to trade higher in the coming week(s).

Headlines for Week Ahead:
US FOMC Meeting
US Jobs report
China Eco Data
US/China Earnings (Apple Inc, Qualcomm, Yum Brands, 
SG Earnings (DBS, Cap Ascendas REIT)

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