Markets are keeping their heads above water as economic data suggests a potential recession and corporate earnings have been mixed. More than 70 companies listed on the S&P 500 have reported quarterly results so far, with about two-thirds of them performing better than expected. Boeing, AT&T, Tesla, IBM, and Levi Strauss are among the companies set to report earnings today.
Microsoft may have beaten the street on earnings, but the company posted its slowest revenue growth since 2016, and its outlook indicated that bad trends would continue. The company’s Windows and Office businesses experienced a dropoff at the end of last year, and more declines are likely coming as the personal computer market shrinks again.
Inflation is slowing down, but many companies have raised prices, but just because costs come down, it doesn’t mean they’re going to lower prices across the board. One reason is that many companies have locked in long-term contracts that set prices months in advance for goods and shipping.