Bloomberg Intelligence's 'Equity Market Minute' 6/2/2023

Gina Martin Adams discusses the current market psychology dominated by recession fears. She highlights the end of the earnings recession for the S&P 500, noting improvements in margins, especially excluding the energy sector. The communication services sector, which faced a significant earnings drop in 2022, is showing signs of recovery. If trends continue, this sector could lead the index's improvement in 2023.

What is the current market sentiment regarding the economic recession?

• Confident in economic stability

• Indifferent to economic changes

• Fears of economic recession are dominating

• Optimistic about immediate recovery

How have the S&P 500 margins, excluding the energy sector, been trending since mid-2021?

• Crashing

• Stable with minor fluctuations

• Unpredictable

• Steadily increasing

What is the expected trend for S&P 500 margins for the rest of the year?

• Continued decline

• Volatility

• Stagnation

• Improvement

What was the percentage decline in net income for the communication services sector in 2022?

• 15%

• 25%

• 20.5%

• 10%

What is the expected impact of the communication services sector's earnings growth on the S&P 500 index in 2023?

• No impact

• Negative impact

• Cause index decline

• Lead the index improvement