If rates are temporary tattoos is the best earnings

Copyright © HT Digital Streams Limit all rights reserved. Teresa Rivas, Barrons 4 min Read 13 Apr 2025, 01:25 IST JPMorgan Chase delivered a top and bottom line. Summary investors are eager to analyze management teams’ tone over a possible downturn in their predictions than earnings in the first quarter. As the first -quarter earnings season kicks off, it is not as important as they see next. At a time when rates such as temporary tattooing, investors are eager to analyze management teams about a possible downturn in their predictions. Four major financial institutions BlackRock, JPMorgan Chase, Morgan Stanley and Wells Fargo-reported in the first quarter earnings on Friday. JPMorgan, the largest bank of the country, and Morgan Stanley both delivered the top and underline buttons. Earnings per share at Blackrock, the world’s largest asset management firm, and Wells Fargo came before the estimates of analysts, while the former revenue was in line, and the latter’s top line a little light. The S&P 500 hit a fresh peak in mid -February before the fears of the war sent into a cliff from a cliff. The results contain some of the sale, but this does not reflect the past few weeks of wild sales after the Draconian April 2 liberation day tariff levels were unveiled (and was partially raised). The result is that the first quarters themselves are more than a footnote compared to the management commentary. In terms of earnings results, investors are often more interested in forward-looking guidance than numbers for the past quarters, but this is especially true with unprecedented rates hanging over the markets. On the one hand, it is reassuring that there were no worrying warnings, as companies such as Delta Air Lines and Walmart were offered earlier this week, before the tariff break: That 90-day extension made companies feel that they had a breathing to abandon the revisions of earnings to now. On the other hand, these offers may not be realized. And, under normal circumstances, investors seem to be able to expect large banks to increase their prospects if the rally continued in January and February. The problem is that the management commentary shows at very constant concern, as the flip-flopping policy is growing and affecting business prospects and US global status. Blackrock CEO Larry Fink – who said on Monday that most CEOs believe the US is in a recession – has reproduced that point and noticed that capital expenditure falls into a CNBC interview on Friday morning. He said the market underestimated how high inflation could rise and that the US needs a trade agreement with China. While the ‘power of American capitalism’ is still alive, the US is now acting as a destabilizing force in the world, it has warned. JP Morgan noted that consumer spending is probably even in the lower-income heels-but these figures can be misleading as Americans pre-loading before the tariff-induced inflation. The corporate clients are taking a guard-and-see attitude, especially smaller businesses, because few people can make long-term decisions at the moment. CEO Jamie Dimon said the most important thing is that trade transactions should be tackled as soon as possible. By contrast, Wells Fargo said at his conference that consumers felt tense with lower income, even if general consumer spending remained steady. “We expect continued volatility and uncertainty and are prepared for a slower economic environment in 2025, but the actual outcome will depend on the results and timing of the policy changes,” CEO Charles Scharf said. Morgan Stanley noted that trade tensions and poor initial public offers weighed further mergers and acquisitions, and that the firm’s bursary and advisory pipelines expanded the firm. In addition, if rates are higher, it will increase borrowing costs and lower corporate confidence. Wednesday’s 90-day tariff proposal was a welcome development for the market, to the point that David Lefkowitz, UBS Financial Services Head of Equities Americas, thinks “we may have reached the peak policy insecurity.” It would be an important bending point, he says, as stocks often move lower, as long as the policy uncertainty is large. “If uncertainty drops here, it will be an important wind wind for stocks,” writes Lefkowitz. “But we’re clear about the way forward. Trading negotiations with US trading partners will be challenging and take time. There may be setbacks on the way … CEO commentary at this point will be important in the upcoming earnings season. ‘ In fact, consensus earnings-per-share estimates for the S&P 500 this year are still in a double-digit growth at $ 267, a figure that looks too rosy, as even modest rates grow. Companies could possibly lower their whole year’s figures, but if no agreements have been made and a significant clarity 90 days one quarter-of-a-quarter off now, it can just kick the gaze on the road. Earlier this week, Tavis McCourt, Raymond James, argued that the S&P 500 richly valued the sales, reminiscent of the recession in 2001 – meaning that more pain could come – and that investors should forget this year and focus on 2026 earnings. Indeed, some investors want to look past this week’s Easter celebration and skip right to Christmas. Write to Teresa Rivas at teresa.rivas@barrons.com, catch all the business news, market news, news reports and latest news updates on live currency. 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