NXTmine: Corporate Earnings Update: Consumers Keep Spending Amidst Volatility

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Executive Summary

  • Consumer activity is strong, but there are some signs that a pullback could be in the offing amid high gas prices, rising interest rates, and expensive grocery bills
  • We highlight two once high-flying mid-cap growth stocks and one major consumer-related conglomerate likely to produce market-moving earnings reports this week
  • Most S&P 500 firms have reported, but a large portion of small and global companies are on tap with quarterly results this week

The first quarter 2022 reporting season continues to be among the most volatile we have seen in many years. There have been massive post-earnings share price reactions from major stocks. Broad macro risks are making their way into the financial statements of both domestic and multinational firms. On conference calls, we hear about key issues like labor shortages (and rising wage costs), surging food and energy prices, lingering supply chain bottlenecks, and uncertainty in China.