Stocks have been declining this week, and investors are hopeful that the upcoming earnings season will help boost the market after a strong start to the year. Analysts predict that first-quarter earnings of S&P 500 companies will increase by 3.1% from the previous year, with full-year profits expected to grow by about 10.7%. Despite concerns about inflation and the Federal Reserve’s policy, all three major US indexes have reached record highs this year, supported by strong fourth-quarter earnings and a resilient economy.
The recent dip in stocks has been attributed to hot inflation data, warnings from Fed officials about rate cuts, and factors such as elevated bond yields and high oil prices. However, some traders believe that the upcoming earnings season could help reignite the market rally. Companies like Delta Air Lines, Citigroup, BlackRock, JPMorgan Chase, and Wells Fargo will be reporting earnings next week, providing insights into consumer spending trends and the overall health of the economy. While fears of a recession have lessened, there are concerns about lower-income consumers reducing their spending amid mixed economic indicators.
The construction industry in the US relies heavily on Latino immigrant workers, who make up about a third of the workforce despite representing only 19% of the overall population. These workers often take on construction jobs due to their low barriers to entry and the abundance of opportunities in the field. Stable employment in construction can offer a pathway to upward mobility for many immigrants, who often support family members in their home countries. The recent tragedy involving six Latino workers who fell to their deaths while working on a bridge in Baltimore highlights the risks faced by these workers.
Disney has announced plans to crack down on password sharing for its Disney+ streaming service in an effort to increase revenue and subscriber numbers. CEO Bob Iger revealed that the company will start enforcing restrictions on password sharing in June in some countries, with broader enforcement planned for September. This move follows in the footsteps of Netflix, which saw a significant increase in sign-ups after implementing similar restrictions on password sharing. The goal for Disney is to move its streaming platform towards profitability, as Disney+ continues to operate at a loss.
The crackdown on password sharing is part of Disney’s broader strategy to boost its streaming services and increase revenue. Hulu, another streaming platform owned by Disney, has already begun limiting sharing of account login information outside of households. The company aims to capitalize on the success of its streaming services and achieve profitability in the near future. By implementing stricter measures to prevent password sharing, Disney hopes to see a similar surge in sign-ups and revenue as seen by Netflix after its crackdown on the practice.
