Amazon & a few stocks reported lower-than-forecast results to hurt market sentiment last Thursday & Friday but like Amazon, some weak results are caused by stiff competition and sector problem that has no implication on the broader market. Last two weeks, there is a long list of encouraging earnings from Microsoft, Meta, Google, etc. There are always weak links in any report season but so far, most results are good news to celebrate. Overall earnings remain a positive factor although it contributed to Friday’s drop.
Finally, while Trump announced high tariff to Canada, Brazil, India, Switzerland, & Taiwan and other smaller economies, US has agreed reasonable 10%-15% tariff with major partners including UK, EU, Japan and appears to have positive negotiation progress with China. Tariff agreement with these major economies removes risk of global trade war to hurt US economy. Also, although White House sounds tough again, odd of compromise and agree with lower trade tax later are still likely. In short, high tariffs last week will not rekindle tariff panic and trade outlook could improve again soon.
