SEC Chairman Paul Atkins indicated that the timing of public company reports could be influenced by investor and bank preferences, with potential changes to the quarterly reporting requirement being considered, though no specific timeline was provided.
President Trump proposed that U.S. public companies shift from quarterly to semi-annual earnings reports, aiming to reduce regulatory burdens and costs, though experts debate whether this change would improve long-term focus or transparency. The SEC is prioritizing this proposal, which could significantly impact corporate reporting practices and Wall Street valuation methods.
U.S. Treasury Secretary Scott Bessent supports President Trump's proposal to replace quarterly company reports with semiannual reports, arguing it would benefit investors by reducing compliance costs and aligning the U.S. with international standards, potentially making the U.S. more attractive for foreign companies, despite concerns about transparency and investor protection.
President Trump proposed that U.S. public companies shift from quarterly to semi-annual earnings reports, which could benefit companies seeking less regulatory hassle and promote long-term focus, but might also increase market volatility and reduce transparency. The move aligns with broader deregulation efforts and echoes past debates, with mixed opinions on its impact on markets and investors.
Donald Trump is advocating for the SEC to allow US public companies to report earnings semi-annually instead of quarterly, aiming to reduce regulatory burdens and boost market participation, though critics argue it could harm transparency and market stability.
President Trump proposed reducing the frequency of public companies' financial reports from quarterly to semiannual, aiming to save costs and improve management focus, a move that would require SEC approval and revisits an idea from his first term.
This week, a multitude of companies across various industries are set to release their earnings reports, including industry leaders like Disney, Alibaba, and PepsiCo, as well as household names such as McDonald's and Ford. Analysts anticipate significant growth in EPS and revenue for companies like Palantir Technologies and McDonald's, while concerns about valuation and stability of electric vehicle demand surround Ford. Philip Morris International is expected to post strong results driven by its smoke-free portfolio, and PepsiCo is anticipated to provide stability and an attractive dividend for investors.
CNBC's Jim Cramer highlighted the upcoming week's focus on quarterly earnings reports, particularly from oil and gas companies. He emphasized the importance of monitoring interest rates and suggested that while next week may not be as strong as the previous one, it could still present opportunities for bullish investors. Cramer mentioned specific companies to watch, including Coterra, Diamondback Energy, Emerson Electric, Celsius, Devon, Occidental, Warner Bros Discovery, Kellanova, Disney, Trade Desk, Illumina, Thermo Fisher, and Danaher. He also mentioned the significance of the Michigan Consumer Sentiment Index in providing insights into the Federal Reserve's fight against inflation.
Stock futures are relatively unchanged after a losing session on Wall Street, with the Dow snapping a three-day winning streak. H&R Block and Cava saw gains after stronger-than-expected quarterly reports, while financial stocks slid following warnings of potential credit rating downgrades. Economic news out of China also weighed on investor sentiment. With just over half of August remaining, the major indexes are on track for a losing month. Investors will be watching for economic data on housing, industrial production, and capacity utilization, as well as the latest retail corporate earnings. Second-quarter profits for S&P 500 companies have declined about 5% from last year, marking the third consecutive quarterly decline. Warning signs are showing for certain major market indexes, with the S&P 500 and Russell 2000 ending below their 50-day moving averages, potentially signaling a downtrend. The Dow suffered its worst day since July 6 but remains above its 50-day moving average.
The US economy faces challenges with continuing bank crisis and company bankruptcies, but the S&P 500 saw a weekly gain due to encouraging inflation data and weaker-than-expected Q1 economic growth. First Republic Bank's deposits dropped nearly 41% in Q1, causing concern among investors. Bed, Bath & Beyond filed for Chapter 11 bankruptcy protection and will be delisted from Nasdaq. Meta Platforms reported positive revenue growth, while Chipotle Mexican Grill beat analyst expectations. More quarterly reports from Ford, Uber, AMD, and Apple are expected. S&P 500 net profit margins are on track to decline for the seventh consecutive quarter. The Federal Reserve will release its latest interest rate decision and the Labor Department will release the April US jobs report.
On Monday, investors will be watching Microsoft's new AI-powered Bing search engine, as well as the stock performance of Alphabet and Microsoft. The Dow, S&P 500, and Nasdaq saw a relatively flat open after stumbling on Friday. This week will see quarterly reports from Johnson & Johnson, Morgan Stanley, and Procter & Gamble. JPMorgan's earnings have led to several firms raising their price targets, while Barclays has lowered its price targets for Tesla and General Motors. Additionally, Palo Alto Networks is solidifying its market leadership in cloud security.
The S&P 500 ETF Trust gained more than 5% in the first quarter of 2023, driven higher by easing inflation numbers despite concerns about instability in the banking sector. Former US President Donald Trump was indicted on roughly 30 criminal counts of document fraud, triggering a relief rally in Digital World Acquisition Corp. Top US bank regulators were grilled in Congressional hearings about their handling of the mid-March collapses of Signature Bank and Silicon Valley Bank. EVgo Inc shares jumped more than 30% after the electric vehicle maker reported a Q4 revenue beat and issued 2023 guidance. Investors will get more quarterly reports from Conagra Brands, Levi Strauss & Co, Constellation Brands, and Lamb Weston Holdings, as well as key economic updates on the March Manufacturing Purchasing Managers Index and the March US jobs report.