Cloudy with a chance of growth stalls… Microsoft kicks off Big Tech earnings tomorrow during a rough time for tech titans. Seemingly everyone from Amazon to Google has announced mass layoffs this year — Amazon’s even ending its charity program to cut costs. Last week Microsoft said it was slashing 10K workers to prep for a recession. It’s expected to report its slowest sales growth in five years and its first earnings drop in eight. It’s not alone: Apple, Google, Amazon, and Meta are also expected to release lower quarterly earnings.
Big Gas energy… From Exxon to Marathon Petroleum, oil giants raked it in last year as gasoline prices soared, notching historically huge profits. In the first quarter, Chevron’s earnings more than quadrupled. Energy was the only stock sector that ended last year in the green. But prices at the pump have been falling: US gas prices fell 9.4% in December from November, and were down for the year. Still, overall energy prices were up 7% from last year. Chevron and Valero are expected to report revenue growth this week — but at a slower pace than last year.