Earnings Set to Show Biggest Sequential Drop Since 2020 as Volatility Rises
Michael Gouvalaris | Apr 14, 2025 06:56PM ET
It’s still all about trade but there are a few other things to watch this week.
Wednesday: Retail sales (+1.4% expected)
It’s been a tough year for consumer spending but especially retail sales. January declined -1.2% (its worse month in almost 4 years), while February only rose +0.2%.
The estimates for March is for a gain of 1.4%, but I’d be surprised if results don’t come in below that estimate.
Earnings: 33 S&P 500 companies will report quarterly earnings this week. Notables include Citigroup Inc (NYSE:C) on Tuesday, and Netflix (NASDAQ:NFLX) on Friday.
Although year-over-year EPS growth is projected to remain positive, around 5.9%.
Whether the lows are in or not is anyone’s guess at this point. I still have my doubts. Unfortunately we are dealing with forces that are completely out of our control (not that there is ever anything we can control), and almost impossible to predict: #1) the outcome & #2) how the markets will react to that outcome.
Successful investing isn’t so much about what you own, but more about what you do. In other words, how do you react when things get bad, and even when things get really good.
If you sold out and now wish you hadn’t but don’t want to chase prices higher, than one thing you can do is “layer in” or buy in increments. You can also focus on higher quality if that keep from losing sleep at night. The above chart shows % of revenues from foreign sales by sector. You can focus on the sectors like Utilities, Financials, Health Care that have the least amount of foreign sales that could potentially be less volatile in the tariff drama.
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You can also focus on high quality with SPHQ and VIG if that helps you get back into the market with less stress. None of this guarantees a positive outcome in the short run, but it keeps you in the market, then its probably worth it.
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