The earnings bonanza rumbles on, with U.S. media and consumer stocks and big oil and renewables topping the list in Europe.
Earnings from PepsiCo and Kellogg on Thursday will offer insight into how consumers are grappling with inflation. All told, more than 90 S&P 500 companies are expected to post results in coming days. Shell reported a record $40 billion profit last year. BP, TotalEnergies and Norwegian state producer Equinor are all due in coming days - as are “Big Renewables” including Danish wind-turbine maker Vestas and Germany’s Siemens Energy.
Then inflation data stunned investors by shooting to a 33-year peak, defying the RBA’s most aggressive tightening campaign in modern history. Macro readings shocked the other way as retail sales fell the most since the darkest pandemic days and house prices suffered their biggest drop since at least 1980.
It was a stellar start to 2023 for markets - stocks and government bonds enjoyed one of the best Januaries on record, fueled by optimism that the worst is over.Growth looking okay - tick; inflation slowing - tick; end to monetary tightening maybe in sight - tick. So far so good. January’s metrics are key as they reflect how investors have set portfolios for the year ahead, though some reckon the month could mark no more than a spate of irrational complacency.