Final Peak Week of the Q1 Season Begins Just As Earnings Hit Their Stride

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Walt Disney Company,Mcdonald’S Corporation,Vertex Pharmaceuticals Inc

Stocks Analysis by Christine Short covering: S&P 500, Walt Disney Company, McDonald’s Corporation, Vertex Pharmaceuticals Inc. Read Christine Short's latest article on Investing.com

First quarter earnings continued to come in better-than-expected last week, but it was the latest Federal Open Markets Committee meeting which led to a pop in markets in the second half of the week.

Rate cut hopes were raised even further on Friday when US jobs data for April came in weaker-than-expected. Nonfarm Payrolls totaled 175,000, well below the Dow Jones consensus of 240,000. Unemployment, which has stayed consistently low, rose to 3.9%. All major US indices ended the day up 1 - 2% on the news.). Amazon surpassed both top and bottom-line expectations, driven by strength in ad revenue which increased 24% YoY, and Amazon Web Services which grew 17%.

On the flipside, there were some consumer-centric names that didn’t fare well when they reported Q1 results last week. Results from) all showed that US consumers were starting to hold back on dining out. All three missed on bottom-line expectations, while only McDonald’s squeaked by on the top-line. Consumers have remained resilient in the face of higher prices in the last two years, but inflation may finally be taking its toll.names reporting thus far, YoY earnings growth stands at 5.

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