2 min

July 25, 2022 - In A Nutshell

Aug 18, 2022
in a nutshell
  • Earnings season — when companies report on their financial results and expectations — hit full swing last week.
  • Many companies are expecting to slow hiring and spending, which is why forecasters predict the economy will continue to slow.
  • Regular, diversified investing can help you capitalize on market movements over the long term.
Image of Your weekly round-up of money news and what it means for your long-term financial wellness for the week of July 25, 2022.
in a nutshell
  • Earnings season — when companies report on their financial results and expectations — hit full swing last week.
  • Many companies are expecting to slow hiring and spending, which is why forecasters predict the economy will continue to slow.
  • Regular, diversified investing can help you capitalize on market movements over the long term.

‘Tis the (earnings) season

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.

Ebb, flow, grow

Investors can use earnings season to hypothesize about the economy’s future. They look at stats like...

  • Is hiring slowing down?
  • Are companies cutting their spending?
  • What do companies expect to earn in the coming months?

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.

Silver linings?

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.

Expect the unexpected

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...

  • Last week, Netflix reported a loss of nearly 1 million subscribers.
  • Later that day, Netflix stock was up 8%.
  • This is because investors expected subscriber loss to be double that number.

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.

This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Article contributors are not affiliated with Acorns Advisers, LLC. and do not provide investment advice to Acorns’ clients. Acorns is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.

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