Good morning!

Investors came back from an abbreviated trading week and a 3-day weekend in a sour mood, as markets continue to seesaw from unpredictable salvos in the tariff wars (a nice bump up this morning, though!). Here's what's happening this week...

• Q1 earnings season goes into full swing this week, with almost 700 companies reporting, including two of the Magnificent 7. Today, numbers are due from Tesla, SAP, Novartis, GE Aerospace, and Verizon, followed Wednesday by Philip Morris, IBM, AT&T, Boston Scientific, Texas Instruments and Boeing. Thursday earnings are due from Alphabet (Google) Proctor & Gamble, T-Mobile, Merck, PepsiCo, Union Pacific, and Comcast, followed Friday by AbbVie, HCA Healthcare, Aon, Colgate-Palmolive, Charter Communications, and Phillips 66. *

• US stocks took a nosedive on Monday after President Trump fired off more social media jabs at Fed Chair Jerome Powell. This stirred up worries about the Fed's independence, especially with markets still reeling from Trump's unpredictable tariff moves. Lately, the stock market has been riding the rollercoaster of Trump's tariff drama, with headlines and shifting narratives causing wild swings. All three major indexes have dropped over 5% since Trump's "Liberation Day" event. Investors are also sweating over Trump's talk about possibly booting Powell. He's been slamming Powell for keeping interest rates "too high," and on Monday morning, Trump called him "Mr. Too Late, a major loser," demanding rate cuts "NOW." This latest Powell drama comes after the Fed chief warned about the economic risks of tariffs. **

• Here’s an interesting recession indicator that’s already starting to signal alarm bells—specifically bell peppers. Frozen pizza sales tend to spike when consumers are feeling pinched — economically and existentially. When the pandemic hit, frozen pizza sales spiked by nearly $1 billion from the year before, per the market research firm IBISWorld. Although growth has since slowed from the breakneck COVID-driven pace, people are still buying up more frozen pizzas, thanks in large part to inflation. The U.S. frozen pizza industry generated $6.5 billion in annual revenue in 2024 and remains well above its pre-pandemic level. Tighter budgets still make that $10 frozen pie seem pretty appealing, especially compared to the costs of dining out. ***

The financial advisors at Miramontes Capital diligently keep up with anything that can impact our clients' finances and tap into more than 175 years of combined investment experience. We do our all to keep your money protected and growing. If you think you might benefit from our financial experience and oversight, contact us today for a FREE, no-obligation consultation. Just call (800) 460-1595. Until next week...

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