Last week marked the beginning of earnings season, and overall results and reactions were mixed. Broad indices remained largely unchanged with the S&P 500 and NASDAQ lower by 0.09% and 0.42% respectively. Small caps fared better, with the Russell 2000 ending higher by 0.59%.

Markets opened the week with Charles Schwab (SCHW) reporting mixed results, beating earnings estimates but announcing a pause to its share buyback program in light of regulatory uncertainty.1 Cash sorting (the movement of funds seeking higher interest rates) remains an issue, and revenue and earnings power are likely to be lower going forward. SCHW sold off on the announcement, but ended the day nearly 3% higher. M&T Bank (MTB) revenues and earnings rose 66% and 53% respectively, and its shares surged nearly 5%.2 Goldman Sachs (GS) reported weaker revenues and earnings, down 5% and 18% respectively.3 Overall, bank stocks absorbed the results well, with the SPDR S&P Regional Banking ETF (KRE) ending the week up 2.09%

Later in the week, wholesale electronics purveyor CDW Corporation (CDW) plummeted after it reported revenues and guidance much lower than expectations, sending a gloomy message on the future of enterprise spending.4 Tesla (TSLA) plunged nearly 10% on weaker-than-expected profit margins as the company announced its intention to give priority to market share over profits.5 The week ended with a strong report from Proctor and Gamble (PG), which gapped higher after beating both revenue and earnings estimates. While volumes fell 3% for the fourth consecutive quarter, PG was able to offset higher costs to customers by raising prices, which were higher by 10% year-over-year across its portfolio.6

Overall markets showed surprising resiliency last week, with volatility as measured by the VIX continues to drift to lower. That might change this week, as the bulk of the S&P 500 report earnings including many Big Tech stocks. Additionally, the Personal Consumption Expenditure (PCE) price index is due on Friday.



The views expressed represent the opinion of Sequoia Financial Group. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Sequoia believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and Sequoia’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. Past performance is not an indication of future results. Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.

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Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.

Q1 Earnings Season Off to Mixed Start, but Markets Surprisingly Resilient | Sequoia Financial Group


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