Tech Rally Faces a Reckoning Ahead of Tough Earnings Season

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Tech Rally Faces a Reckoning Ahead of Tough Earnings Season

Bloomberg2023-04-10

Majority of investors expect earnings to drive S&P 500 lowerTight financial conditions, recession, inflation are key risksThis year’s 20% rally in US technology stocks is decoupling from reality ahead...

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BlogArca
·2023-04-10
Tech stock is shorting now
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1
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Controverse
·2023-04-10
The problem most Americans have is their Lifestyle. They don't except that in principalyou can't afford to spend extremely more money as you earn! Why do you think this tech rally will face a very tough Earnings Season? Quite simple the prices of the equities in General shoot wit hout any reasonable reason to the moon! The shareprice doesn't represent the real price of the company!!!!!!!! Sounds very logicalto me that now With a recession already visible in the horizon the only thing the Indici can do is falling of the cliff. FromThe 14th of April the companies start presenting their outcomes. I'm afraid most of them can't give or won't do any prediction for the rest of the year. That's the trigger forthe Indicies to show more
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- Yolofomo101:
  Gd
  2023-04-10
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- JC888:
  Why am I leaning towards agreeing with u?
  2023-04-10
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- LesterTan:
  I think the coming earnings will be decent or even positive for the big techs like google, meta & amzn.
  2023-04-10
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winnerking
·2023-04-10
ok
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Guavaxf30
·2023-04-10
I have to say that I too feel it is right to exercise extreme caution. The recent avalange of tech layoffs is because these companies are expecting a cold winter. Even Alibaba's news about a breakup needs deeper scrutiny. Look how they configure the breakupto get an idea. I believe it is to protect and firewall their crown jewels and to pass off the others.
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- Guavaxf30:
  Thanks.
  2023-04-11
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- Aqa:
  Liked & comment, suport my friend.😊👍🏻👍🏻👍🏻
  2023-04-10
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- Lord_Kuberan:
  Is alibaba exercising any rights ?
  2023-04-10
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Nearly 60% of the 367 respondents surveyed by Bloomberg said the bounce in the shares had nothing to do with earnings expectations.Profits at big banks, on the other hand, are likely to have taken a hit from the tumult in the industry, according to 41% of the participants.“The tech outperformance is a bit overdone and we’re not chasing that indiscriminately,” Wei Li, global chief investment strategist at BlackRock Inc., said in an interview in London. “It’s being driven by expectations the Federal Reserve will start cutting rates as a recession becomes evident, and not necessarily by company fundamentals.”The fallout from Silicon Valley Bank’s collapse has spurred mixed narratives as to where policy and markets are headed. While worries of a recession are mounting, they’re also stoking optimism that the Fed will be forced to pause its rate-hike campaign, even as the central bank grapples with sticky inflation.The reporting season is the next big catalyst for investors who’ve been glued to economic data and Fedspeak for market cues. The earnings will drag the S&P 500 lower, said 60% of survey respondents, while data compiled by Bloomberg Intelligence shows analysts estimate a profit drop of 8% for its members in the first quarter.“More broadly, the impact of inflation and higher costs still has room to hit profit margins, and that will come through this season,” said BlackRock’s Li. Crucial TechThe report card for tech will be crucial for the overall market, since the S&P 500’s 7% gain in the first quarter has been mostly powered by a handful of the sector giants. Analysts estimate US tech earnings plunged 15% in the three months through March, with companies hit by high costs and slowing demand. Early omens don’t bode well, with broad layoffs in the industry signaling a slowdown. Tesla Inc. shares, which trade more like a growth or tech stock, slid this month after the electric-car maker’s slim gains in vehicle deliveries in the last quarter disappointed investors. About a fifth of S&P 500 companies have issued guidance on first-quarter results in recent weeks, with three negative forecasts for every positive one, according to Aneeka Gupta, a director at Wisdomtree UK Ltd.Tech stocks are also looking expensive. The Nasdaq 100 is trading at 24 times its forward earnings, well above its long-term average of 19 and the S&P 500’s multiple of 18, according to data compiled by Bloomberg.More than a quarter of the respondents to Bloomberg’s survey expect earnings to stall the tech rally. Only 14% predict further gains.Banking TurmoilWhere tech has gained favor, banks have lost it. A key focus for investors in the earnings season will be any impact from the recent collapse of some regional US lenders.About 41% of those polled by MLIV Pulse expect the turmoil to hit profitability at the bigger banks, while 31% don’t see a spillover.JPMorgan Chase & Co. and Citigroup Inc. will provide a first look when they report results on April 14. Analysts still project a profit increase of 4.2% for US financials in the first quarter, data compiled by Bloomberg Intelligence show.“Given what we know now, and the fact that recent banking issues were caused by liquidity problems — not credit problems — we do not expect a broader fallout affecting larger banks,” said Ron Saba, senior portfolio manager at Horizon Investments.The biggest negative factor this season will be a further tightening in financial conditions, according to a third of those polled by MLIV Pulse. An economic slowdown and high inflation are seen as the next biggest risks. While some recent data show an easing in price pressures, market strategists including Morgan Stanley’s Michael Wilson have warned that profit margin expectations are still too high.Overall, about 56% of participants expect US Treasuries to outperform equities over the next month.“The upcoming earnings season has the potential to send shivers among investors as high prices, an increasingly likely recession and difficulty accessing capital amid the banking sector debacle will all weigh heavily on the market,” said Greg Bassuk, chief executive officer at AXS Investments.Of the respondents in the latest survey, 65% were professional investors and 35% retail.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9942987363,"gmtCreate":1681105955152,"gmtModify":1681105959923,"author":{"id":"3555973450718537","authorId":"3555973450718537","name":"BlogArca","avatar":"https://static.tigerbbs.com/e688d952c95db04948e16915bcc8833e","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":3,"crmLevelSwitch":1,"idStr":"3555973450718537","authorIdStr":"3555973450718537"},"htmlText":"Tech stock is shorting now","listText":"Tech stock is shorting now","text":"Tech stock is shorting now","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9942987363","repostId":1188314356,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9942918462,"gmtCreate":1681101833057,"gmtModify":1681104936971,"author":{"id":"4123989491963162","authorId":"4123989491963162","name":"Controverse","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4123989491963162","authorIdStr":"4123989491963162"},"htmlText":"The problem most Americans&nbsp;have is their &nbsp; &nbsp; Lifestyle. They don't except that in principalyou can't afford to spend extremely&nbsp;more money as you earn! Why do&nbsp;you think this tech rally will face a very tough Earnings Season? Quite simple the prices&nbsp;of the&nbsp;equities in General&nbsp;shoot wit hout any&nbsp;reasonable reason&nbsp;to the moon! The shareprice doesn't represent the real price&nbsp;of the company!!!!!!!! Sounds very logicalto me that now With&nbsp;a recession already visible in the horizon the only thing the Indici can do is falling of the cliff. FromThe 14th of April the companies start presenting their outcomes. I'm afraid most of them can't give or won't do any prediction for the rest of the year. That's the trigger forthe Indicies to show more","listText":"The problem most Americans&nbsp;have is their &nbsp; &nbsp; Lifestyle. They don't except that in principalyou can't afford to spend extremely&nbsp;more money as you earn! Why do&nbsp;you think this tech rally will face a very tough Earnings Season? Quite simple the prices&nbsp;of the&nbsp;equities in General&nbsp;shoot wit hout any&nbsp;reasonable reason&nbsp;to the moon! The shareprice doesn't represent the real price&nbsp;of the company!!!!!!!! Sounds very logicalto me that now With&nbsp;a recession already visible in the horizon the only thing the Indici can do is falling of the cliff. FromThe 14th of April the companies start presenting their outcomes. I'm afraid most of them can't give or won't do any prediction for the rest of the year. That's the trigger forthe Indicies to show more","text":"The problem most Americans have is their Lifestyle. They don't except that in principalyou can't afford to spend extremely more money as you earn! Why do you think this tech rally will face a very tough Earnings Season? Quite simple the prices of the equities in General shoot wit hout any reasonable reason to the moon! The shareprice doesn't represent the real price of the company!!!!!!!! Sounds very logicalto me that now With a recession already visible in the horizon the only thing the Indici can do is falling of the cliff. FromThe 14th of April the companies start presenting their outcomes. I'm afraid most of them can't give or won't do any prediction for the rest of the year. That's the trigger forthe Indicies to show more","images":[],"top":1,"highlighted":2,"essential":1,"paper":1,"likeSize":65,"commentSize":62,"repostSize":0,"link":"https://ttm.financial/post/9942918462","repostId":1188314356,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106265732,"gmtCreate":1681105942622,"gmtModify":1681106848877,"authorId":4103367219819260,"author":{"id":4103367219819260,"idStr":"4103367219819260","authorId":4103367219819260,"name":"Yolofomo101","avatar":"https://community-static.tradeup.com/news/31c0903f35d435ea22b519b6e594c6eb","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9942918462,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Gd</span>","text":"<span class=\"s1\">Gd</span>","html":"<span class=\"s1\">Gd</span>"},{"id":106265775,"gmtCreate":1681106060068,"gmtModify":1681106073163,"authorId":3570103090255456,"author":{"id":3570103090255456,"idStr":"3570103090255456","authorId":3570103090255456,"name":"JC888","avatar":"https://community-static.tradeup.com/news/f3e3c0218599fca5c4e265ddbee1fb32","vip":1,"currentWearingBadge":{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.08.31","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2007},"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.11.25","individualDisplayEnabled":1,"backgroundColor":{"dark":"#675a37","tint":"#f9ebc2"},"fontColor":{"dark":"#ffffff","tint":"#ab7a0e"},"individualDisplaySort":0,"categoryType":2007}]},"repliedAuthorId":0,"objectId":9942918462,"type":1,"supId":0,"prevId":0,"content":"Why am I leaning towards agreeing with u?","text":"Why am I leaning towards agreeing with u?","html":"Why am I leaning towards agreeing with u?"},{"id":106265772,"gmtCreate":1681106052645,"gmtModify":1681106056015,"authorId":4105421923397120,"author":{"id":4105421923397120,"idStr":"4105421923397120","authorId":4105421923397120,"name":"LesterTan","avatar":"https://community-static.tradeup.com/news/1244d1eac543f84d6b2c017832a1d98d","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.01.19","exceedPercentage":"93.91%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":9,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9942918462,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">I think the coming earnings will be decent or even positive for the big techs like google, meta &amp; amzn.</span>","text":"<span class=\"s1\">I think the coming earnings will be decent or even positive for the big techs like google, meta &amp; amzn.</span>","html":"<span class=\"s1\">I think the coming earnings will be decent or even positive for the big techs like google, meta &amp; amzn.</span>"},{"id":106265751,"gmtCreate":1681105985932,"gmtModify":1681105989055,"authorId":3567465549774094,"author":{"id":3567465549774094,"idStr":"3567465549774094","authorId":3567465549774094,"name":"MartinChua","avatar":"https://static.tigerbbs.com/4bbcff73db6ea43fde7d4fed8c89e24e","vip":1,"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9942918462,"type":1,"supId":0,"prevId":0,"content":"ok","text":"ok","html":"ok"},{"id":106265749,"gmtCreate":1681105985004,"gmtModify":1681105988235,"authorId":3574309252756598,"author":{"id":3574309252756598,"idStr":"3574309252756598","authorId":3574309252756598,"name":"jaffer","avatar":"https://static.tigerbbs.com/1a3d779d7e90da7a7b584e147536abf7","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9942918462,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"}],"langContent":"EN"},{"id":9942919272,"gmtCreate":1681101203297,"gmtModify":1681101207053,"author":{"id":"3583834684688529","authorId":"3583834684688529","name":"winnerking","avatar":"https://static.tigerbbs.com/53456def62158dd751e7e146be8f2930","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3583834684688529","authorIdStr":"3583834684688529"},"htmlText":"ok","listText":"ok","text":"ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9942919272","repostId":1188314356,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9942937869,"gmtCreate":1681100677051,"gmtModify":1681100681250,"author":{"id":"3576140222331577","authorId":"3576140222331577","name":"Guavaxf30","avatar":"https://static.tigerbbs.com/1ff15ff6aa254c9130f9af922f7e2447","vip":1,"crmLevel":9,"crmLevelSwitch":1,"idStr":"3576140222331577","authorIdStr":"3576140222331577"},"htmlText":"I have to say that I too feel&nbsp;it is right to exercise extreme caution.&nbsp; The recent avalange of tech layoffs is because these companies are expecting a cold winter. Even Alibaba's news about a breakup needs deeper scrutiny. Look how they configure the breakupto get an idea. I believe it is to protect and firewall their crown jewels and to pass off the others.","listText":"I have to say that I too feel&nbsp;it is right to exercise extreme caution.&nbsp; The recent avalange of tech layoffs is because these companies are expecting a cold winter. Even Alibaba's news about a breakup needs deeper scrutiny. Look how they configure the breakupto get an idea. I believe it is to protect and firewall their crown jewels and to pass off the others.","text":"I have to say that I too feel it is right to exercise extreme caution. The recent avalange of tech layoffs is because these companies are expecting a cold winter. Even Alibaba's news about a breakup needs deeper scrutiny. Look how they configure the breakupto get an idea. I believe it is to protect and firewall their crown jewels and to pass off the others.","images":[],"top":1,"highlighted":2,"essential":1,"paper":1,"likeSize":23,"commentSize":20,"repostSize":0,"link":"https://ttm.financial/post/9942937869","repostId":1188314356,"repostType":2,"repost":{"id":"1188314356","kind":"news","pubTimestamp":1681094736,"share":"https://ttm.financial/m/news/1188314356?lang=&edition=fundamental","pubTime":"2023-04-10 10:45","market":"us","language":"en","title":"Tech Rally Faces a Reckoning Ahead of Tough Earnings Season","url":"https://stock-news.laohu8.com/highlight/detail?id=1188314356","media":"Bloomberg","summary":"Majority of investors expect earnings to drive S&P 500 lowerTight financial conditions, recession, i","content":"<html><head></head><body><ul><li><p>Majority of investors expect earnings to drive S&amp;P 500 lower</p></li><li><p>Tight financial conditions, recession, inflation are key risks</p></li></ul><p>This year’s 20% rally in US technology stocks is decoupling from reality ahead of what’s predicted to be a gloomy reporting season, the latest MLIV Pulse survey shows.</p><p style=\"text-align: start;\">While investors have flocked to tech in the market shakeup amid recent banking turmoil, the rotation is at odds with analyst calls for the steepest drop in quarterly profits for the sector since at least 2006. Nearly 60% of the 367 respondents surveyed by Bloomberg said the bounce in the shares had nothing to do with earnings expectations.</p><p style=\"text-align: start;\">Profits at big banks, on the other hand, are likely to have taken a hit from the tumult in the industry, according to 41% of the participants.</p><p style=\"text-align: start;\">“The tech outperformance is a bit overdone and we’re not chasing that indiscriminately,” Wei Li, global chief investment strategist at BlackRock Inc., said in an interview in London. “It’s being driven by expectations the Federal Reserve will start cutting rates as a recession becomes evident, and not necessarily by company fundamentals.”</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/14233aa02dc07ef3ebfc6699c7b98771\" tg-width=\"967\" tg-height=\"477\"/></p><p></p><p>The fallout from Silicon Valley Bank’s collapse has spurred mixed narratives as to where policy and markets are headed. While worries of a recession are mounting, they’re also stoking optimism that the Fed will be forced to pause its rate-hike campaign, even as the central bank grapples with sticky inflation.</p><p>The reporting season is the next big catalyst for investors who’ve been glued to economic data and Fedspeak for market cues. The earnings will drag the S&amp;P 500 lower, said 60% of survey respondents, while data compiled by Bloomberg Intelligence shows analysts estimate a profit drop of 8% for its members in the first quarter.</p><p style=\"text-align: start;\">“More broadly, the impact of inflation and higher costs still has room to hit profit margins, and that will come through this season,” said BlackRock’s Li. </p><h3 style=\"text-align: start;\">Crucial Tech</h3><p style=\"text-align: start;\">The report card for tech will be crucial for the overall market, since the S&amp;P 500’s 7% gain in the first quarter has been mostly powered by a handful of the sector giants. Analysts estimate US tech earnings plunged 15% in the three months through March, with companies hit by high costs and slowing demand. </p><p style=\"text-align: start;\">Early omens don’t bode well, with broad layoffs in the industry signaling a slowdown. Tesla Inc. shares, which trade more like a growth or tech stock, slid this month after the electric-car maker’s slim gains in vehicle deliveries in the last quarter disappointed investors. </p><p style=\"text-align: start;\">About a fifth of S&amp;P 500 companies have issued guidance on first-quarter results in recent weeks, with three negative forecasts for every positive one, according to Aneeka Gupta, a director at Wisdomtree UK Ltd.</p><p style=\"text-align: start;\">Tech stocks are also looking expensive. The Nasdaq 100 is trading at 24 times its forward earnings, well above its long-term average of 19 and the S&amp;P 500’s multiple of 18, according to data compiled by Bloomberg.</p><p style=\"text-align: start;\">More than a quarter of the respondents to Bloomberg’s survey expect earnings to stall the tech rally. Only 14% predict further gains.</p><h3 style=\"text-align: start;\">Banking Turmoil</h3><p style=\"text-align: start;\">Where tech has gained favor, banks have lost it. A key focus for investors in the earnings season will be any impact from the recent collapse of some regional US lenders.</p><p>About 41% of those polled by MLIV Pulse expect the turmoil to hit profitability at the bigger banks, while 31% don’t see a spillover.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c4d0713b5426e9be3df5ef44878fe3af\" tg-width=\"814\" tg-height=\"354\"/></p><p></p><p>JPMorgan Chase &amp; Co. and Citigroup Inc. will provide a first look when they report results on April 14. Analysts still project a profit increase of 4.2% for US financials in the first quarter, data compiled by Bloomberg Intelligence show.</p><p style=\"text-align: start;\">“Given what we know now, and the fact that recent banking issues were caused by liquidity problems — not credit problems — we do not expect a broader fallout affecting larger banks,” said Ron Saba, senior portfolio manager at Horizon Investments.</p><p style=\"text-align: start;\">The biggest negative factor this season will be a further tightening in financial conditions, according to a third of those polled by MLIV Pulse. An economic slowdown and high inflation are seen as the next biggest risks. </p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b02ff6198a68fba6855af35eeb5e82e9\" tg-width=\"979\" tg-height=\"405\"/></p><p></p><p>While some recent data show an easing in price pressures, market strategists including Morgan Stanley’s Michael Wilson have warned that profit margin expectations are still too high.</p><p style=\"text-align: start;\">Overall, about 56% of participants expect US Treasuries to outperform equities over the next month.</p><p style=\"text-align: start;\">“The upcoming earnings season has the potential to send shivers among investors as high prices, an increasingly likely recession and difficulty accessing capital amid the banking sector debacle will all weigh heavily on the market,” said Greg Bassuk, chief executive officer at AXS Investments.</p><p style=\"text-align: start;\">Of the respondents in the latest survey, 65% were professional investors and 35% retail.</p></body></html>","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tech Rally Faces a Reckoning Ahead of Tough Earnings Season</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTech Rally Faces a Reckoning Ahead of Tough Earnings Season\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-04-10 10:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2023-04-10/tech-rally-faces-a-reckoning-ahead-of-tough-earnings-season?srnd=premium-asia><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Majority of investors expect earnings to drive S&P 500 lowerTight financial conditions, recession, inflation are key risksThis year’s 20% rally in US technology stocks is decoupling from reality ahead...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2023-04-10/tech-rally-faces-a-reckoning-ahead-of-tough-earnings-season?srnd=premium-asia\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.bloomberg.com/news/articles/2023-04-10/tech-rally-faces-a-reckoning-ahead-of-tough-earnings-season?srnd=premium-asia","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1188314356","content_text":"Majority of investors expect earnings to drive S&P 500 lowerTight financial conditions, recession, inflation are key risksThis year’s 20% rally in US technology stocks is decoupling from reality ahead of what’s predicted to be a gloomy reporting season, the latest MLIV Pulse survey shows.While investors have flocked to tech in the market shakeup amid recent banking turmoil, the rotation is at odds with analyst calls for the steepest drop in quarterly profits for the sector since at least 2006. Nearly 60% of the 367 respondents surveyed by Bloomberg said the bounce in the shares had nothing to do with earnings expectations.Profits at big banks, on the other hand, are likely to have taken a hit from the tumult in the industry, according to 41% of the participants.“The tech outperformance is a bit overdone and we’re not chasing that indiscriminately,” Wei Li, global chief investment strategist at BlackRock Inc., said in an interview in London. “It’s being driven by expectations the Federal Reserve will start cutting rates as a recession becomes evident, and not necessarily by company fundamentals.”The fallout from Silicon Valley Bank’s collapse has spurred mixed narratives as to where policy and markets are headed. While worries of a recession are mounting, they’re also stoking optimism that the Fed will be forced to pause its rate-hike campaign, even as the central bank grapples with sticky inflation.The reporting season is the next big catalyst for investors who’ve been glued to economic data and Fedspeak for market cues. The earnings will drag the S&P 500 lower, said 60% of survey respondents, while data compiled by Bloomberg Intelligence shows analysts estimate a profit drop of 8% for its members in the first quarter.“More broadly, the impact of inflation and higher costs still has room to hit profit margins, and that will come through this season,” said BlackRock’s Li. Crucial TechThe report card for tech will be crucial for the overall market, since the S&P 500’s 7% gain in the first quarter has been mostly powered by a handful of the sector giants. Analysts estimate US tech earnings plunged 15% in the three months through March, with companies hit by high costs and slowing demand. Early omens don’t bode well, with broad layoffs in the industry signaling a slowdown. Tesla Inc. shares, which trade more like a growth or tech stock, slid this month after the electric-car maker’s slim gains in vehicle deliveries in the last quarter disappointed investors. About a fifth of S&P 500 companies have issued guidance on first-quarter results in recent weeks, with three negative forecasts for every positive one, according to Aneeka Gupta, a director at Wisdomtree UK Ltd.Tech stocks are also looking expensive. The Nasdaq 100 is trading at 24 times its forward earnings, well above its long-term average of 19 and the S&P 500’s multiple of 18, according to data compiled by Bloomberg.More than a quarter of the respondents to Bloomberg’s survey expect earnings to stall the tech rally. Only 14% predict further gains.Banking TurmoilWhere tech has gained favor, banks have lost it. A key focus for investors in the earnings season will be any impact from the recent collapse of some regional US lenders.About 41% of those polled by MLIV Pulse expect the turmoil to hit profitability at the bigger banks, while 31% don’t see a spillover.JPMorgan Chase & Co. and Citigroup Inc. will provide a first look when they report results on April 14. Analysts still project a profit increase of 4.2% for US financials in the first quarter, data compiled by Bloomberg Intelligence show.“Given what we know now, and the fact that recent banking issues were caused by liquidity problems — not credit problems — we do not expect a broader fallout affecting larger banks,” said Ron Saba, senior portfolio manager at Horizon Investments.The biggest negative factor this season will be a further tightening in financial conditions, according to a third of those polled by MLIV Pulse. An economic slowdown and high inflation are seen as the next biggest risks. While some recent data show an easing in price pressures, market strategists including Morgan Stanley’s Michael Wilson have warned that profit margin expectations are still too high.Overall, about 56% of participants expect US Treasuries to outperform equities over the next month.“The upcoming earnings season has the potential to send shivers among investors as high prices, an increasingly likely recession and difficulty accessing capital amid the banking sector debacle will all weigh heavily on the market,” said Greg Bassuk, chief executive officer at AXS Investments.Of the respondents in the latest survey, 65% were professional investors and 35% retail.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106271539,"gmtCreate":1681162777311,"gmtModify":1681162783668,"authorId":3576140222331577,"author":{"id":3576140222331577,"idStr":"3576140222331577","authorId":3576140222331577,"name":"Guavaxf30","avatar":"https://static.tigerbbs.com/1ff15ff6aa254c9130f9af922f7e2447","vip":1,"currentWearingBadge":{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":9,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9942937869,"type":1,"supId":106264679,"prevId":0,"content":"<span class=\"s1\">Thanks.</span>","text":"<span class=\"s1\">Thanks.</span>","html":"<span class=\"s1\">Thanks.</span>"},{"id":106264679,"gmtCreate":1681101209121,"gmtModify":1681101212301,"authorId":4091884160412060,"author":{"id":4091884160412060,"idStr":"4091884160412060","authorId":4091884160412060,"name":"Aqa","avatar":"https://community-static.tradeup.com/news/4a899a6e247bc68815d3a2da3b82a81a","vip":1,"currentWearingBadge":{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Have published 3 or more picked posts, and have published at least one picked post and participated in comments within 30 days","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.03.31","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2007},"crmLevel":2,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9942937869,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Liked &amp; comment, suport my friend.😊👍🏻👍🏻👍🏻</span>","text":"<span class=\"s1\">Liked &amp; comment, suport my friend.😊👍🏻👍🏻👍🏻</span>","html":"<span class=\"s1\">Liked &amp; comment, suport my friend.😊👍🏻👍🏻👍🏻</span>"},{"id":106264676,"gmtCreate":1681101203833,"gmtModify":1681101207258,"authorId":3559546385259983,"author":{"id":3559546385259983,"idStr":"3559546385259983","authorId":3559546385259983,"name":"Lord_Kuberan","avatar":"https://static.tigerbbs.com/9e82384ce5c6aef5201a6f95f219f3be","vip":1,"crmLevel":2,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9942937869,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Is alibaba exercising any rights ?<span class=\"Apple-converted-space\"> </span></span>","text":"<span class=\"s1\">Is alibaba exercising any rights ?<span class=\"Apple-converted-space\"> </span></span>","html":"<span class=\"s1\">Is alibaba exercising any rights ?<span class=\"Apple-converted-space\"> </span></span>"},{"id":106264668,"gmtCreate":1681101186809,"gmtModify":1681101190056,"authorId":4087914112606770,"author":{"id":4087914112606770,"idStr":"4087914112606770","authorId":4087914112606770,"name":"roanngoh","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.03.25","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9942937869,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":106264667,"gmtCreate":1681101186644,"gmtModify":1681101189959,"authorId":4105421923397120,"author":{"id":4105421923397120,"idStr":"4105421923397120","authorId":4105421923397120,"name":"LesterTan","avatar":"https://community-static.tradeup.com/news/1244d1eac543f84d6b2c017832a1d98d","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.01.19","exceedPercentage":"93.91%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":9,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9942937869,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Buy when there’s fear on the streets or you may regret. My 2 cts worth.</span>","text":"<span class=\"s1\">Buy when there’s fear on the streets or you may regret. My 2 cts worth.</span>","html":"<span class=\"s1\">Buy when there’s fear on the streets or you may regret. My 2 cts worth.</span>"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":24,"commentSize":4,"repostSize":3,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}