Last week was a mixed bag of economic news. On the one hand, we had good Q1 earnings from Amazon, Meta, Apple, and Microsoft, and stable Core PCE data. On the other, news of the U.S. GDP shrinking by 0.3% in the first quarter and weaker than expected employment growth numbers. Here’s what’s happening this week…

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• While most of the Magnificent 7 have reported for Q1 (NVIDIA is still a few weeks away), close to 1,800 companies post earnings this week. This morning, numbers are due from AMD (Advanced Micro Devices), Arista Networks, Duke Energy, Brookfield Asset Management, and Marriott International, followed Wednesday by Novo Nordisk, Uber, Walt Disney Company, ARM Holdings, and DoorDash. On Thursday, earnings are due from Shopify, Anheuser-Busch, ConocoPhillips, Brookfield, Monster Beverage, and Coinbase, followed Friday by Enbridge, Honda Motor, and Starwood Property. *

• The Federal Reserve meets this week, and expectations are practically nil (well, 1%) for a rate cut. This, despite weeks of harsh criticism and demands from President Trump that the Fed reduce borrowing costs. The White House has argued that inflation has steadily cooled, and high borrowing costs are no longer needed to restrain inflation. The Fed is expected to maintain its key interest rate at approximately 4.3% during its upcoming meeting on Tuesday and Wednesday. Chair Jerome Powell, along with several of the 18 officials on the Fed’s rate-setting committee, have emphasized the importance of assessing the economic impact of Trump’s tariffs before considering any policy adjustments.**

• The Institute for Supply Management’s survey, which measures how well the services sector is doing, showed better-than-expected results in April. The score was 51.6, which is above the 50-point mark that indicates growth. New orders increased to 52.3 from 50.4, and employment activity improved to 49 from 46.2. However, the prices paid by businesses jumped to 65.1 from 60.9, which raises concerns about inflation in the slowing economy. ***

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