Earnings season — when companies report on their financial results and expectations — hit full swing last week.
This happens quarterly, so let’s learn the facts.
Following two straight weeks of gains, the markets dipped this week after an unprecedented sell-off in the oil market, but closed today’s session sharply higher.
• Oil prices turned negative for the first time in history as stay-at-
• The week ahead will be a busy one for earnings: Companies will disclose results for the most recent quarter, and experts will review a key report on economic growth. Here’s what to watch in the week ahead.
Investors can use earnings season to hypothesize about the economy’s future. They look at stats like...
Takeaways from this earnings season? Many companies are expecting to slow hiring and spending, which is why forecasters predict the economy will continue to slow.
A slower economy will likely help with the supply chain, inflation, and interest rates. If people spend less, companies often have surplus goods. Surplus typically helps cool inflation, which means there’s less need for interest rate hikes. Yay!
If a slower economy causes some dips in the market, it could be a good time to increase your Recurring Investment. Why? Because market dips mean many stock prices are lower, so your dollar can go farther.
Like a lot of news, earnings reports share what’s already happened. But investors are always trying to predict what stocks and the economy are going to do, so they can get ahead of it.
The stock market’s performance largely reflects these expectations, rather than the most recent headlines.
Here’s an example from this earnings season...
Even though Netflix’s big subscriber loss looks like bad news, the company still did better than investors expected — so its stock price went up.
Remember, there’s no way to know for sure what the future holds. Regular, diversified investing can help you capitalize on market movements over the long term.
Consider boosting your Recurring Investment now to have a better chance at buying less when stock prices are high, and more when they’re low.
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