Markets More Forward-Looking as Earnings Roll In; Classic Case of FUD Likely to Keep Gains Subdued

After one of the most turbulent weeks in stock market memory, trading on Monday was rather more subdued. There were no major announcements from the White House on tariffs or any other pressing matter, and earnings reports from Goldman Sachs (GS) and M&T Bank (MTB) suggested that financial institutions were not stressed, giving the markets a leg up to start the week.

There was some of the usual up-and-down that have typified stock trading in recent weeks, as the major avrages rose at the outset and gave most or all of it back before rallying in the afternoon, though the final minutes were a dissappointment. The Dow gave up 200 points in the final half hour, with the NASDAQ and S&P following it lower.

Regardless of the pattern, stocks ended the session with reasonably good gains.

Tuesday has first quarter earnings from Bank of America (BAC), Citigroup (C), PNC (PNC), Johnson & Johnson (JNJ), Erikson (ERIC) and supermarket chain Albertson's (ACI) before the open to digest, along with Import and Export Prices and the NY Fed's Empire Manufacturing Survey.

The bank stocks: BAC, C, PNC, all reported reasonably good quarters. Stocks of the companies were positiv prior to the open, though only marginally. BAC was the best, up more than two percent.

Johnson & Johnson (JNJ), seen as a gauge for consumer spending, delievered a small beat with EPS of $2.77, but the stock was lower by about one percent in pre-market activity despite the company raising its full year sales guidance. Investors are seemingly a little gun shy after being rolled and rollicked over the past few weeks.

The Empire Fed index showed improvement, though still negative.

Some downside came from Albertsons, which delivered an earnings beat but warned their annual profit forecast may not meet expectations. Shares of the company were seen down six to seven percent in pre-market trading.

U.S. import prices decreased 0.1 percent in March following an 0.2-percent increase in February, the U.S. Bureau of Labor Statistics (BLS) reported Tuesday morning. Prices for U.S. exports were unchanged in March following increases of 0.5 percent in February and 1.4 percent in January.

Those numbers had little impact on market psychology since they were from before Trump's April 2 tariff announcement.

Earnings reports, while generally good, not great, thus far, are likely to have little impact on stock prices as sentiment has shifted, the focus now clearly on the future, not past results.

Futures flattened out approaching the open. Gold was catching a bid. Tuesday's trading appears to be clouded by recession fears and uncertainty over the future of tariffs. Add in doubts as to President Trump's effectiveness at dealing with Ukraine, Russia, and the Middle East and the recipe is classic FUD (Fear, Uncertainty, Doubt).

Who would have guessed.

At the Close, Monday, April 14, 2025:
Dow: 40,524.79, +312.08 (+0.78%)
NASDAQ: 16,831.48, +107.03 (+0.64%)
S&P 500: 5,405.97, +42.61 (+0.79%)
NYSE Composite: 18,432.25, +212.60 (+1.17%)