Weekly Market Guide

Raymond James maintains a constructive outlook on US equities driven by an exceptional Q1 earnings season and a massive surge in corporate capital expenditures. While rising oil prices pose a potential GDP headwind, resilient economic data and broadening market participation support a positive stance.

Key Takeaways

• 1.The Q1 earnings season is significantly outperforming expectations with 26% year-over-year EPS growth, double the initial 13% estimate.
• 2.Massive domestic investment is a major growth engine, with S&P 500 companies expected to spend $1.8 trillion in capex this year.
• 3.Despite a surge in oil prices toward a forecast of $100/bbl WTI, healthy economic buffers and resilient consumer demand are expected to maintain a positive 2.4% GDP growth in 2026.

Table of Contents

• Weekly Market Guide
• Economic Buffers to the Oil Costs Right Now... Mindful of the Headwind if it Persists Over Time
• Economic Resilience
• Capex Is A Driving Force For the Economy
• Strong Q1 Earnings Season
• Earnings Growth Broadening Out, Tech Still The Leader
• Tech vs. Mag 7
• Technical: S&P 500

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