I Was Told There’d Be Drama
A week ago, I (somewhat begrudgingly) expressed guarded optimism about earnings season in the US.
At the time, just 21% of companies had reported. "A lot hangs on mega-cap tech," I wrote, in "Just Don’t Call It Optimism."
In the end, mega-cap tech was fine with the exception of Facebook, which logged its first revenue decline on record. Apple and Amazon beat, and investors found plenty to like in Microsoft's guidance and Google's ad numbers.
With 56% of companies having now reported results
U.S. consumer to pundits: “Rumors of my death have been greatly exaggerated.”
Not sure, but never discount the wisdom of that great ’60s Western: “Have credit card, will travel.”
It’s a mixed bag for sure now
And now there is Manchin coming to the rescue with a big spending bill as well asthe infrastructure bill kicking in sometime and the chips bill. Get some lower inflation #’s and the pundits will need a new narrative.
It is kind of like everyone expected the demolition derby, with every car made showing up and only a couple Plymouths did.
On a relative basis, America and Americans are navigating all of the current global economic issues (too long to list) better than anywhere else.
The investment money seems to be following.
I just got some doors on Monday that I ordered back in March. Still don’t have the screens I ordered February. The hospital where I work is still 8 cars short in their homecare motor pool.
It’s going to take some time yet to work through the backlog. Is it realistic to see earnings fall in any significant way for another Q or 2 ?