Jonathan Levin, Columnist

This Earnings Season Is a Rorschach Test for Investors

Companies have posted decent profits, but the commentary from executives has been unsettling at times. And it may be worse than they’re letting on.

May 5, 2025 at 9:00 AM UTC

By Jonathan Levin

Jonathan Levin is a columnist focused on US markets and economics. Previously, he worked as a Bloomberg journalist in the US, Brazil and Mexico. He is a CFA charterholder.

Applying pressure.
Photographer: Andrew Harnik/Getty Images North America

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

This earnings season is a bit of a Rorschach test: Bulls will anchor to the fact that corporate profits have solidly beaten expectations, while bears will lean on executives’ commentary around the costs of tariffs and heightened recession risks.

I’ll try to split the difference: This is clearly a wobbly corporate environment that will get worse if President Donald Trump barrels ahead with tariffs around the highest in a century. But the corporate sector could yet find its footing if the president backtracks soon.