Key Themes Emerging From Q1 Earnings Reporting Season

Review the latest Weekly Headings by CIO Larry Adam.

Key Takeaways

  • Stocks and bonds perform well after the last rate hike
  • The bar for cutting rates is higher than it has been in the past
  • First-quarter earnings results have been better than feared

Derby Day is almost here – the fastest two minutes in sports! This weekend, 20 of the best three-year old horses will get the opportunity to win the 149th Run for the Roses. Forte is the favorite to win with 3-1 odds. However, some fans will be cheering for the underdog, hoping another longshot, like Rich Strike in 2022, will pull off another stunning upset. Picking the winner makes for interesting conversation. Some fans randomly select their choice based on a lucky number, the jockey’s silk colors, or a casual connection with the horse’s name. Others hope to gain an edge scouring the racing program for insights on the horse's pedigree, speed ratings, race results, and performance under different track conditions. In many ways, the rigors of analyzing a horse race is comparable to investment research, where analysts and strategists meticulously review corporate reports, historical earnings, revenue trends, competition, and the macro environment (just to name a few) for insights on where the market is heading. Below we discuss the Federal Reserve, regional banks, and the key themes emerging from 1Q23 earnings season.