Wall Street Brunch: Four Mag 7 Earnings And Fed On Tap

Earnings Reports - Apple is expected to report EPS of $1.43 on revenue of $88.89 billion, with a focus on subscription and service revenue despite concerns about slowing iPhone growth [8] - Microsoft is projected to report EPS of $3.38 on revenue of $73.8 billion, driven by AI adoption, cloud services, and data center investments, with investors keen on AI integration into core platforms [9] - Other companies reporting include Waste Management, Nucor, Visa, Procter & Gamble, UnitedHealth, Boeing, PayPal, Qualcomm, Robinhood, eBay, Mastercard, Exxon Mobil, and Chevron [10] Trade Agreement - The United States and the European Union reached a last-minute agreement to impose a 15% tariff on most EU exports, avoiding a broader trade conflict [11] - This agreement comes ahead of a deadline that would have seen significantly higher tariffs, with initial proposals from Trump suggesting a 50% tariff on EU imports [12] Economic Policy and Market Reactions - Concerns about the Federal Reserve's independence have led to market volatility, with speculation about potential rate cuts and their implications for economic stability [5][7] - Markets are pricing in over 200 basis points of Fed cuts by August 2026, which historically has been associated with recessionary conditions [7]