Week of 04/24-04/28 Earnings continue, Big tech takes the stage

JorgeEduardo - stock.adobe.com

The volatility continues this week with more company earnings as the market seems to be giving back last week's gains. Amazon reported earnings on Thursday after trading hours which came as a massive surge in their stock to 123 points, just to turn around and finish lower than at the market close at 107 points. Amazon had been currently surging on news from other similar retailers experiencing layoffs and bottlenecks in their supply chains. Investors had been banking on amazon to drive their cloud services sector into new territories, but its to not be the case. Amazon reported 3 billion in revenue for the first quarter of 2023, but soon after the CFO announced a decline in growth of cloud computer offerings which took the stock gains back. Big tech took the stage early in the week as Alphabet, Meta, and Microsoft reported earnings beating analyst expectations for Q1. Apple is set to report Q1 earnings next week on May 4th. Overall, the market seemed to be setting up gains for the week up until Wednesday when we saw the SPY drop to 404 points. The GDP (gross domestic product) report also came out this week indicating U.S. economic growth slowed down in Q1. The Federal Reserve is set to meet next week and provide a status on the interest rate situation. Whether the Fed raises rates by 25 basis points or pauses the rate hikes next week, volatility seems to be the only certainty for the stock market price action.