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Corporate America delivered another exceptional earnings season, with companies continuing to adjust to a shifting macroeconomic landscape.  After tariff-muddled first-quarter results, companies did a good job adjusting to tariffs in the second quarter and continued to do so in the last quarter. 

Several factors likely played a role in last quarter’s strong results:

• Unexpectedly strong economic growth in the third quarter provided support. 

• Gross domestic product (GDP) growth may reach 3% annualized despite the slowdown in job growth. 

• Lower expected tariffs helped, as the amount of upside was likely inflated by companies guiding conservatively for the third quarter back in July and August, given the uncertainty. 

Bottom line, these numbers are quite impressive, particularly given that the current economic and earnings cycles have been going on for a while post-COVID-19. Expectations keep rising, the bar keeps going higher, and corporate America continues to clear it handily.

The financial markets are being influenced by a mix of factors this week, including the following:

• Retail Sales: Cooler-than-expected retail sales for September are also contributing to the mixed economic signals.

• Dovish Signals vs. Elevated Inflation: There is significant uncertainty and internal division within the Fed regarding a potential interest rate cut in December. 

For the week of November 24th, the US economic calendar features several key reports:

• Tuesday - Producer Price Index (PPI) (Sep), (Delayed), Retail Sales (Sep), (Delayed).

• Wednesday - Durable Goods Orders (Oct), Initial Jobless Claims (Weekly), New Home Sales (Oct).

• Thursday - US Financial Markets Closed: Thanksgiving Day Holiday.

• Friday - US Financial Markets close at 11 am MT.