5 Critical Questions that Corporate America is about to answer

Dear Reader, One of the most extraordinary market stories of 2022 has been the resilience of earnings expectations. In the coming weeks, we’ll hear from the biggest companies in America as they announce their quarterly earnings and discuss their business outlooks. “All of the macro barometers we track that tend to lead earnings results are pointing to a miss — a falling guidance ratio, ailing corporate sentiment, slowing signs in both consumption and industrial activity plus negative economic surprises,” BofA’s Savita Subramanian wrote. For investors, the question is to what degree any downward revisions to earnings will affect stock prices, which have plunged around 20% since the beginning of the year. Below are some tough questions we expect corporate America to answer in the upcoming weeks as earnings are reported: How is the strong dollar affecting earnings? While a strong dollar makes international goods cheaper for U.S. customers, it makes U.S. goods more expensive for international customers. How is demand? It’s an obvious question. But with signs that the economy is slowing — thanks in part to a Federal Reserve that’s actively working to do just that — sales (a.k.a., revenue or the top line) will be of high interest this time. How are inventories? Much of the economic recovery of the past two years has been hindered by supply chain disruptions that resulted in a lot of shortages, a phenomenon that has been reflected by depressed inventory levels. In recent months, there has been evidence that inventory levels have been climbing. How’s the workforce? We know that employment in America continues to rise. But is hiring keeping up with demand? Job openings data suggests no — there were nearly two job openings per unemployed person in May.  These persistent labor shortages come with a variety of implications for business. Are profit margins coming down? Falling sales volumes, bloated inventories, and higher wage costs all present headwinds for profit margins. Wrapping Up One of the most consistent patterns in stock market history is that most companies tend to beat analysts’ expectations for quarterly earnings. So while everyone is bracing for bad news, it wouldn’t be silly to prepare for some good news. Editor, Silver Ridge Market Report Andrew Graham [Andrew Graham] P.S.  As the stock market runs abysmal, we're urging all investors to explore a gold investment strategy… before it's too late. That's why we just released our [2022 Ultimate Gold Portfolio]( and research report. It includes our top 5 publicly traded gold companies… key industry trends… and actionable investment insight for protecting your wealth. Kick-off your gold investment journey the right way with [your FREE copy of the Ultimate 2022 Gold Portfolio.]( 316 Media and Silver Ridge Market Report, is not giving individualized financial advice. Never invest more than you are willing to lose. 316 Media or Silver Ridge Market Report is not giving financial, investment, or stock advice. Our content is designed for generalized informational purposes only. If you have specific questions about investments or stocks you should consult a financial advisor. Articles, News, Or Other published materials are not always the views of 316 Media and/or Silver Ridge Market Report. If you feel you are receiving these emails in error please email Support@SilverRidgePro.com or click the unsubscribe button below. 316 Media 30 N Gould St, Ste R, Sheridan United States of America [(307) 200-9389](tel:(307)%20200-9389) srmr@silverridgepro.com [Unsubscribe](