In a decisive move that has caught the attention of global markets, the United States has reiterated its focus on China regarding trade relations over the past week. This comes on the heels of recent discussions initiated by the White House with Japan and Italy, as well as tentative talks with the European Union. The goal of these discussions is to negotiate reductions in the trade barriers that have escalated between the U.S. and other nations. Investors on Wall Street have responded positively to these developments, contributing to the ongoing rally that began on April 7.

As the stock market attempts to gain footing, investors are particularly attentive to upcoming earnings reports and company insights regarding their strategies in the face of the persistent trade war. This week marks a critical moment for well-known technology firms, with Alphabet (GOOGL) and Tesla (TSLA) set to report their quarterly earnings. Likewise, firms like Verizon (VZ) and Boeing (BA) are part of the Dow Jones industrials reporting roster, with Boeing being a focal point in the ongoing U.S.-China trade tensions. Additionally, GE Aerospace (GE) and several major defense contractors are expected to release their earnings, which could shed light on the Pentagon's financial planning amid the heightened geopolitical climate.

The stock market is currently navigating a correction phase, even as it strives for recovery. A growing number of stocks are forming bases, especially those showing double-bottom patternsan indicator that often precedes upward price movements. Investors are advised to watch for stocks demonstrating strong relative strength, such as Adtalem Global Education (ATGE), Spotify (SPOT), Palantir Technologies (PLTR), Marex (MRX), and Loar (LOAR). Many of these companies are approaching critical buy points while maintaining positions above their 50-day moving averages. Spotify and Palantir are particularly noteworthy as they are trading near vital technical support levels after experiencing significant price increases.

The week began with a sense of uncertainty in global markets, following President Donald Trumps announcement on April 9 to pause U.S. reciprocal tariffs, which was followed by a further exemption for certain China-manufactured electronics on April 11. Despite this, the U.S. continues to impose 145% duties on some Chinese imports, along with a blanket tariff of 10% on various other imports. Auto parts, steel, and aluminum are still facing a 25% tariff, further complicating trade relations. In a move to counteract China's recent restrictions on critical rare earth metalsessential for industries such as electric vehicles and aerospacethe U.S. government is contemplating requests for deep sea mining leases. Meanwhile, China has taken steps to prevent its domestic airlines from engaging in business dealings with Boeing, which is the largest exporter from the United States.

As for the automotive sector, all eyes are on Tesla, which is set to announce its first-quarter results on Tuesday. Analysts predict a potential 4.4% decline in profits and stagnant sales figures compared to the previous year, as the company's recent deliveries fell short of expectations. CEO Elon Musk's involvement in political advocacy and his relationship with the Trump administration seem to be casting a shadow on the brand's reputation. Analysts from Piper Sandler have expressed concerns that Tesla's financial results for Q1 might not meet investor expectations, with gross margins reportedly nearing multi-year lows. Investors will be listening closely for updates regarding the much-anticipated launch of a more affordable EV model, the impact of the trade war on production, the planned rollout of robotaxis in Austin by June 2025, and when Musk will step back from his role within the Trump administration.

In the Dow industrials, Verizon leads a group of five companies reporting earnings this week. All eyes are also on Boeing, given its strategic position in the ongoing trade conflict. Other notable companies such as Merck (MRK), Procter & Gamble (PG), and IBM (IBM) are also scheduled to reveal their financial results. Analyst predictions appear muted across the sector, although Boeing's projected figures are expected to improve as the year progresses. Merck, for its part, is anticipated to experience a rebound in the latter half of the year.

Google-parent Alphabet is expected to announce its Q1 earnings after the market closes on April 24, with analysts forecasting a 6% increase in earnings and an 11% rise in revenue. The growth of its cloud computing segment is estimated to soar by 28%. Investors are particularly eager for information concerning a $6.6 billion lawsuit brought forth by British companies alleging market manipulation, as well as ongoing antitrust proceedings led by the U.S. Department of Justice.

GE Aerospace is also set to reveal its Q1 earnings on Tuesday, marking a significant milestone as it celebrates its first birthday as a standalone entity. Since its spinoff a year ago, the company has seen its shares increase by 30%, despite some recent declines. Analysts expect earnings per share of $1.26, a significant rise from the 82 cents reported last year, with sales projected at $9.05 billion. While revenue from its space systems segment is expected to decline by 24%, analysts predict this will be offset by increases in aeronautics, defense, and mission systems.

In related news, Morgan Stanley has upgraded the outlook for the defense sector, with companies like Lockheed Martin (LMT) preparing to report their earnings soon. Analysts expect Lockheed to maintain flat earnings while achieving a 3.3% growth in revenue. In contrast, RTX (RTX) is projected to see a slight increase in earnings to $1.35 per share, alongside a 2.6% revenue growth to $19.81 billion. Northrop Grumman (NOC) is expected to face minor declines in both earnings and sales. These companies are all scheduled to release their earnings on Tuesday.

In the insurance sector, several companies are being monitored closely after Travelers (TRV) exceeded expectations in its Q1 report. Chubb (CB), Aon (AON), and W.R. Berkley (WRB) are all set to announce their results soon, with industry analysts hoping for a positive trend.

Stock market participants are also focused on Philip Morris International (PM), which will report its quarterly earnings before the market opens on Wednesday. Analysts project a 7.3% increase in profits alongside a 4% rise in sales. With PM shares currently performing well in the S&P 500 indexup 33% this yearthe company is banking on its smoke-free product line, especially the Zyn nicotine pouch, to drive revenue growth through the decade.

Penumbra (PEN) is scheduled to release its first-quarter earnings after the market closes on Wednesday. The company, known for developing treatments for neurovascular and peripheral vascular diseases, is anticipated to report an adjusted earnings figure of 67 cents per share on sales of $316 million, reflecting a remarkable surge of over 63% in earnings alongside a 13% increase in sales.

O'Reilly Automotive (ORLY) is also poised for growth as the U.S. car fleet ages and new car prices rise. The companys shares have surged nearly 18% this year, and analysts forecast an uptick in earnings growth from low- to high-single digits. Their earnings report is expected on Wednesday.

Finally, T-Mobile US (TMUS) is set to announce its Q1 financial results after the market closes on Thursday, with analysts anticipating an earnings per share of $2.47up 24%and revenue growth of 5% to $20.6 billion. T-Mobile is projected to lead in postpaid phone subscriber additions, with expectations of adding 502,000 new subscribers.

Agnico Eagle Mines (AEM) will also report its Q1 results on Thursday. The recent shift in market sentiment, coupled with an unexpected retreat from bonds, has propelled gold prices up by 26% this year. As a result, Agnico shares have enjoyed a robust rally, increasing by over 55%. Analysts are optimistic about the company's earnings outlook for the year, and comments regarding the ongoing trade war will likely be of significant interest to investors.