This Week’s Market Outlook: Banks Face Earnings Test as Markets Digest Trump’s Tariff Shifts
TLDR
Financial companies like Goldman Sachs, Bank of America, and Citigroup are reporting earnings this week amid market uncertainty caused by tariff policies
Tech and entertainment giants including Netflix, TSMC, and UnitedHealth Group also releasing quarterly results
Key economic data on retail sales and housing starts will provide insights on consumer spending and housing market
Markets experienced volatility following Trump’s tariff announcements, with exemptions now announced for key tech products
Corporate executives are expressing uncertainty, with many companies likely to suspend full-year guidance due to economic turbulence
The financial markets are entering a packed week of corporate earnings reports and economic data releases, all against the backdrop of ongoing uncertainty around tariff policies. Major financial institutions, tech companies, and healthcare giants are set to report their quarterly results as investors navigate a complex economic landscape.
This week brings earnings reports from several large financial firms, including Goldman Sachs on Monday, followed by Bank of America and Citigroup on Tuesday. These reports come after JPMorgan Chase CEO Jamie Dimon warned of “heavy turbulence” and suggested more companies might suspend their full-year outlooks due to economic uncertainty.
Goldman Sachs kicks off the week after beating analyst estimates in its previous quarter. Bank of America and Citigroup follow on Tuesday, with other financial firms like M&T Bank, PNC Financial, American Express, and U.S. Bancorp also reporting throughout the week.
Tech and Entertainment Giants Report
Beyond banking, investors will see results from major companies across different sectors. Netflix reports on Thursday in what’s expected to be its first earnings release without subscriber numbers. The streaming company posted strong revenue gains in its previous quarter and raised its 2025 revenue forecast.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chip manufacturer, will share its results Thursday after posting better-than-expected profits last quarter. The company’s outlook will be closely watched given recent news that tariff exemptions will apply to smartphones, laptop computers, and memory chips.
UnitedHealth Group also reports Thursday, following a previous quarter where its 7% year-over-year revenue growth fell below analyst expectations. United Airlines rounds out the diverse lineup of companies sharing their financial performance this week.
Economic Data in Focus
Key economic indicators will provide insight into consumer spending and housing market conditions. Wednesday brings March retail sales data, which economists expect to show a 1.4% increase after a modest 0.2% rise in February. This report comes as analysts watch for signs of slowing consumer spending.
Thursday’s housing starts report for March will offer an update on housing supply amid low inventory levels that continue to worsen housing affordability issues. Earlier in the week, the homebuilder confidence survey will provide insight into construction expectations as builders prepare for added costs from tariffs.
Tariff Policy Developments
Markets experienced a volatile trading week as investors reacted to the latest tariff announcements. Despite the S&P 500’s best weekly performance in over a year, the benchmark index remains down 6% since President Trump’s April 2 tariff announcement. The Nasdaq Composite and Dow Jones Industrial Average are off roughly 5% during the same period.
Weekend news brought some relief to tech investors, with exemptions announced for key products including smartphones, laptop computers, hard drives, and computer processors. These exemptions could benefit tech giants like Apple and Nvidia.
The estimated effective tariff rate has moved from 22.5% on April 2 to 27% after the latest China levies, according to the Yale Budget Lab. With tariff policies still in flux, this uncertainty is expected to remain a key driver of market action in the weeks ahead.
Corporate executives are openly expressing their concerns about the economic outlook. BlackRock CEO Larry Fink noted that “uncertainty and anxiety about the future of markets and the economy are dominating client conversations,” while Delta Air Lines pulled its full-year guidance amid what its CEO described as a “murky” outlook.
The bond market has added another layer of complexity. The 10-year Treasury yield saw its largest weekly gain since November 2021, creating what one strategist called “a new negative” in the market narrative. Rising interest rates during a period of economic uncertainty and recession fears compound the challenges for investors.
Market strategists expect many companies to withhold guidance given the unpredictable policy environment. As one analyst put it, “It’s the murkiest environment you could be in outside of a pandemic.”
Markets will be closed this Friday for Good Friday, capping a week that could set the tone for how companies and investors navigate the uncertain economic landscape in the months ahead.
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Filed under: News - @ April 13, 2025 2:11 pm