this post contains sponsored advertising content this content is for informational purposes only and not intended to be investing advice tuesday market open with a light news day investors may be happy to sit still ahead of next week’s q1 earnings season kickoff however travel and leisure stocks are seeing some movement ahead of the market opening meanwhile shipping and transportation stocks are exhibiting some weakness despite a lighter day of news the service sector does have an important report coming out this morning after the open investors should keep an eye on the ism nonmanufacturing pmi report to get a better read on the service sector of the economy and how inflation is affecting it the fed has been hoping to see consumers focus on services over goods to reduce the demand for goods and possibly help relieve inflation one positive sign for services came in after the close yesterday when carnival ccl cruise lines reported that it broke its sevenday booking record ccl was up 476 in premarket trading on the news ccl’s news is giving a boost to its competitors with royal caribbean rcl and norwegian cruise line nclh trading 310 and 369 higher in premarket trading a single earning announcement of note came from acuity brands ayi which beat on earnings and revenue prompting a 1 rally in premarket trading the manufacturing and lighting company was able to overcome a “significant increase” in material and freight costs by passing on the higher costs to consumers in the form of price hikes equity index futures were a little lower before the open as the sp 500 spx is testing its february highs investors may be in “wait and see” mode ahead of next week’s earnings season however tomorrow’s fomc meeting minutes could stir up a bit of a storm depending on how hawkish fed members sound perhaps the worry is that we’re in the eye of the storm and earnings season could bring another torrent of selling if companies aren’t able pass on the rising costs of business the same way acuity did stocks followed through on friday’s bounce with the sp 500 rallying 081 on monday the rally was led by consumer discretionary technology and energy sectors the boost in technology stocks helped the techheavy nasdaq composite comp rally 19 stocks like twitter twtr and tesla tsla skewed the results because of their enormous market caps the rally wasn’t particularly broad with the new york stock exchange seeing advancers barely outpacing decliners in fact the rally was mostly among megacap and growth stocks the crsp us megacap index rallied 098 while the sp 500 pure growth index rallied 141 in contrast the smallcap russell 2000 rut was only 021 higher while the sp 500 pure value index fell 055 looking at twitter and tesla twitter rallied more than 27 on monday after sec filings revealed that tesla ceo elon musk bought more than 9 of the company’s outstanding shares making him the single largest shareholder while mr musk has not made his intentions clear on what he hopes to accomplish with his ownership in the past he has been critical of twitter for what he sees as suppressing free speech on its platform investors appear to view musk’s move as a defense for conservatives and republicans that have been spurned by twitter expulsion policies because digital world acquisition dwac fell nearly 10 on the news dwac is a special purpose acquisition company or spac that is looking to merge with trump media  technology group former president donald trump was using the merger to create a new social media platform after he was expelled from twitter for disinformation over his failed reelection that may have contributed to the events of january 6 2021 while only related to twitter through the presence of elon musk tesla rallied 561 on monday the purchase of twitter shares is a personal investment by mr musk and isn’t related to tesla in any way instead tsla rallied within 6 of its alltime high as investors appeared to also focus on electric vehicle stocks lordstown ride canoo goev workhorse wkhs and fisker fsr all saw doubledigit returns on monday chart of the day crazy train the dow jones transportation average djt—candlesticks is testing horizontal support pink around the 15500 level as well as its 50day moving average blue and its 200day moving average yellow data sources ice sp dow jones indices chart source the thinkorswim® platform for illustrative purposes only past performance does not guarantee future results transporter beam the transportation sector has been one of the strongest throughout the pandemic as many consumers turned to online retail therapy to make staying home a little more bearable as the global economy has reopened over the last six months supply chain bottlenecks have been a positive problem for transports however last week the dow jones transportation average djt fell almost 5 after the department of labor reported a decline of 4900 truck driving jobs the news appeared to suggest that demand for shipping is waning additionally freight rates are also falling according to an article by freightwaves the outbound tender volume index that measures the amount of freight being shipped fell 181 last week and was down 146 for the year however declining driver jobs and falling freight rates could simply be signs that the transports are finally catching up to the pandemic supply chain problems currently the djt is testing its 50day moving average but further weakness may be a bad sign for transports in fact continued weakness could also be a bad sign for the economy if demand for shipping continues to decline dimon in the rough another lessthanstellar signal for the economy came from jpmorgan jpm ceo jamie dimon’s annual shareholder letter mr dimon warned that the us economy is facing enormous risks from inflation and the war in ukraine while the letter was mostly upbeat talking about the strength of the us consumer mr dimon also said the fed would likely hike the discount rate several more times this year—including by half a point in may—which would likely lead to increased market volatility jpmorgan will help kick off q1 earnings season a week from wednesday when it reports its earnings along with companies like blackrock blk delta air lines dal and bed bath  beyond bbby last minute tweaks according to bloomberg analysts are making last minute adjustments to q1 earnings forecasts and appear to have settled on a 57 increase in earnings growth for the sp 500 much of the gains are coming in the inflationary sectors like energy and materials that are benefiting from rising commodity prices financials are expected to be a drag on earnings despite higher yields the 57 earnings forecast rises to 135 when financials are removed but only rises to 68 when energy and financials are taken out of the equation the revenue growth picture may be more stable at 102 for the sp 500 8 when excluding energy and 114 when excluding financials operating margins are forecasted to be around 159 which is higher than last year’s 154 however net income margins are forecasted at 129 which is actually lower than last year’s 135 this means that energy and utilities could be among the biggest winners this earnings season similar to q4 of 2021 on the other side consumer discretionary and communications are shaping up to be the weakest sectors this post contains sponsored advertising content this content is for informational purposes only and not intended to be investing advice