In this week’s Edge, we are taking stock of the recent earnings trends and guidance provided by U.S. companies, and then asking ourselves if these measures and management expectations justify the prices investors are paying today?

Respect the tape. That’s the message from market technicians (those who analyze price and volume data in markets) after this week’s rally. The ebullient response by equities to the Fed’s seemingly dovish press conference resulted in meaningful “breakouts” and surges in momentum in many stock indices.

Every partner, parent, or friend knows that there is a big difference between hearing and listening. Hearing is just the passive perception of sound. Listening is the active absorption of sound.

Communication breaks down when we hear but we don’t listen.

The question as we look to the remainder of 2023 is: has enough changed in the macro environment that the recent relief rallies in last year’s losers can continue?