What to watch for in the markets in the week ahead: Monster tech earnings, then sell in May?

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What to watch for in the markets in the week ahead

The economic calendar is light next week and Federal Reserve officials are in a quiet period before their next meeting in early May. But then there are corporate earnings reports, which will overshadow everything else, market-wise. More than one third of the S & P 500 reports earnings next week — including megacaps Microsoft, Alphabet, Meta Platforms and Amazon — versus less than 12% in the week just ended and only 2% last week. Communication Services stocks have soared 20% in 2023 .

With the outlook for the rest of 2023 so uncertain, the ghost of recession future is hanging over the stock market, especially since lower Treasury market yields, the Federal Reserve staff, leading economic indicators, a slowdown in bank lending, and the past week's Philadelphia Fed and jobless claims surveys are all conspiring to point to a contraction. Sell in May? Even analysts who don't foresee a recession aren't optimistic about the immediate outlook for stocks.

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