Earnings season is upon us — here's what to expect

div > div.group > p:first-child"> Quraterly earnings for the S&P 500 are expected to decline for the first time since the second quarter of 2016, even though the index is just 2% from its historic high.

Stocks are rising even with lower earnings because of the focus on the future, not the past. The stock market is a discounting mechanism for a future stream of earnings. Flat or declining earnings don't necessarily mean the stock market is in trouble. First, there is a good chance earnings for the first quarter will turn positive. Because guidance is usually conservative, most companies end up beating analyst estimates. On average, the earnings surprise for the S&P 500 is about 3 percentage points.

And that's the key: What side of the recession debate are you on? If you believe there will be a recession in 2020, then earnings will certainly decline and go negative, along with the stock market.As earnings recessions go, this one is pretty modest so far. It looks more like flat earnings growth after a torrential two-year run. Second-quarter earnings are also looking flattish to slightly down.

"You have pricing pressure and cost increases," he said."You have some degree of labor increases, transportation costs, and material costs, as well as some impact from tariffs. You are also definitely seeing pricing pressure, particularly in technology, where there has been pressure on semiconductor prices and even Apple's phones."

Italia Ultime Notizie, Italia Notizie

Similar News:Puoi anche leggere notizie simili a questa che abbiamo raccolto da altre fonti di notizie.

Chipmakers have surged this year, but first-quarter earnings reports might really disappointSemiconductor stocks, up sharply this year on hopes for a China trade deal, could face their day of reckoning during earnings season.
Fonte: CNBC - 🏆 12. / 72 Leggi di più »

Delta's first-quarter earnings, revenue beat Wall Street expectationsInvestors were expecting a strong quarter from Delta, especially after it raised its earnings and revenue guidance last week.
Fonte: CNBC - 🏆 12. / 72 Leggi di più »

Here comes Levi Strauss' first earnings report as a public company in nearly 35 years ...Levi Strauss, which returned to the public market last month, is scheduled to report quarterly earnings on Tuesday afternoon. Private company
Fonte: BusinessInsider - 🏆 729. / 51 Leggi di più »

Levi Strauss swings to profit in its first earnings release since IPOFor the first-quarter Levi reported earnings per share of 37 cents on revenue of $1.44 billion. Jeans always grow in a depression.
Fonte: CNBC - 🏆 12. / 72 Leggi di più »

First quarter earnings are expected to be lousy, but the stock market may not careThe worst earnings season in three years is about to begin, but stock strategists say the market should be able to ignore weaker profits and continue to edge toward all-time highs. Earnings don’t matter unless they are collapsing. The Fed matters more. 999 baby! Glass half empty. Classic spin LOL... What a joke this is You people keep trying to fool the market... It will not last
Fonte: CNBC - 🏆 12. / 72 Leggi di più »

‘Golden Cross’ Boosts Investors’ Confidence Entering Earnings SeasonA number of stock-market indicators show momentum accelerating ahead of first-quarter earnings season, a boost to major indexes as they approach last year’s all-time highs.
Fonte: WSJ - 🏆 98. / 63 Leggi di più »