The meat of earnings season begins on Tuesday night when Microsoft (MSFT) reports, followed by hundreds of other reports in all sectors of the market. So far the earnings season has been lackluster, with the exception of Netflix (NFLX) , which helped to trigger a sizable rally on Friday. Sentiment improved nicely as the market celebrated a vision of a less hawkish Fed and some signs of corporate earnings growth. Mike Wilson of Morgan Stanley notes that economic growth and earnings are weakening, and the optimism about a less hawkish Fed is misplaced. If Wilson is correct, we should start seeing some market reactions this week as earnings reports roll out.

Source: Wall Street Journal January 23, 2023 12:45 UTC