[Good Morning Market] Major Earnings Announcements in Focus... Caution Advised as Domestic Stocks Remain Volatile

Tesla, Alphabet, SK Hynix, Hyundai Motor, and Other Major Companies
Focus on Key Domestic and Global Earnings Announcements
Continued Overheating Expected in 'Presidential Election Theme Stocks'

This week, the domestic stock market is expected to enter a phase of repeated fluctuations rather than a clear upward or downward trend. This is due to a concentration of earnings announcements from major domestic and international companies, including Tesla, Alphabet, SK Hynix, and Hyundai Motor.

On April 18 (local time), the New York stock market was closed for Good Friday (the Friday before Easter). The KOSPI and KOSDAQ both ended the session with strong gains ahead of the holiday, rising by 2.1% and 3.2%, respectively.

On the 17th, the KOSPI showed a firm upward trend in the early trading session, supported by net buying from institutions. Reporters are monitoring the stock market situation in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started trading at 1,416 won, down 10.7 won from the previous trading day. The exchange rate in the 1,410 won range is the lowest level this year based on the closing price. 2025.4.17. Photo by Kang Jinhyung

In the securities industry, it is believed that the tariff risk posed by U.S. President Donald Trump has reached its peak. Trump's policy of reciprocal tariffs has entered the negotiation phase after a 90-day grace period, and the risks related to tariff policy are considered to have already been priced into the market.

Lee Kyungmin, a researcher at Daishin Securities, explained, "Tariffs on electronic devices and auto parts have been eased, and regulations rather than tariffs have been introduced for semiconductors and pharmaceuticals, confirming the maximum level of pressure from Trump. As negotiations began with Japan, expectations were reflected in the process, and the stock market shifted from a phase of fear to one of relief."

This week, first-quarter earnings announcements are expected to have the greatest impact on the stock market. Starting with LS Electric on the 21st, HD Hyundai Electric on the 22nd, and Samsung Biologics and LG Innotek on the 23rd, several companies will release their first-quarter results. On the 24th, SK Hynix, Hyundai Motor, and HD Hyundai Heavy Industries are also scheduled to announce their earnings.

In the United States, Tesla is set to announce its results on the 22nd, followed by Amazon and Intel on the 24th, and Alphabet on the 25th. Last week, Netflix reported strong results, which led to a significant surge in broadcasting-related stocks in the domestic market. As the share prices of leading stocks in each sector and industry are expected to fluctuate based on their earnings results, stocks with high price and valuation burdens may see their earnings become a trigger for profit-taking.

Choi Bowon, a researcher at Korea Investment & Securities, stated, "At least until the end of April or early May, the market is expected to remain in a phase of repeated fluctuations rather than a clear upward or downward trend. The prolonged tariff negotiations and the concentration of major companies' earnings announcements are factors that will limit a rebound in the index."

With the presidential election campaign now in full swing, domestic political events are also becoming market variables. Following the impeachment of former President Yoon Sukyeol and the confirmation of an early presidential election on June 3, speculative funds are expected to continue flowing into politically themed stocks.

Lee Sunghoon, a researcher at Kiwoom Securities, predicted, "The domestic stock market will continue to see a stock-picking environment centered on theme stocks that can reflect earnings momentum or election-related issues, amid the perception that tariff uncertainties have passed their peak."