As we approach April 19, 2024, investors are eagerly anticipating the quarterly earnings reports of major companies such as Procter & Gamble (PG), American Express (AXP), and Schlumberger (SLB). Procter & Gamble is expected to see a modest earnings increase of 3.65%, showing steady growth. American Express, on the other hand, projects a substantial 23.75% rise in earnings, bouncing back from a previous shortfall. Schlumberger anticipates a 17.46% earnings increase, continuing its trend of exceeding expectations. These growth rates are all above the industry averages, signaling strong competitive performance by these companies.
Following Israel’s military strike on Iran, oil prices experienced a surge, with Brent crude briefly surpassing $90 a barrel. However, prices later stabilized, with Brent crude settling at $88.62 and West Texas Intermediate at $84.10 per barrel. The tensions in the Middle East have also bolstered safe-haven assets, such as gold, which reached a new all-time high, and the yen, which strengthened against other currencies. The aftermath of the military actions has left both nations on edge, adding to the uncertainty in global markets.
In response to the escalating geopolitical tensions, U.S. Treasury yields fell as investors flocked to safe-haven assets. The cautious approach to interest rate cuts by Federal Reserve officials, including New York Fed President John Williams, reflects the economic strength of the country. Despite mixed economic signals, the robust Philadelphia Fed manufacturing data highlights a contrast between the conservative stance of the Fed and the increasing demand for safer investments in the face of growing global uncertainties.
The quarterly earnings reports of major companies like Procter & Gamble, American Express, and Schlumberger provide valuable insights into the performance of key sectors in the economy. The impact of geopolitical tensions on oil prices, safe-haven assets, and U.S. Treasury yields underscores the interconnectedness of global financial markets. As investors navigate these uncertainties, a cautious approach to investment decisions may be prudent in the current environment.