Wall Street Week Ahead: Doubts increase that first quarter will be earnings low point

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NEW YORK: As Wall Street braces for what may be the first U.S. profit decline since 2016, investors say the first quarter may not mark the low ...

NEW YORK: As Wall Street braces for what may be the first U.S. profit decline since 2016, investors say the first quarter may not mark the low point for 2019 earnings.

As stocks sold off in December, some investors worried 2019 would bring a profit recession for S&P 500 companies, defined as at least two quarters of year-over-year declines. The last U.S. profit recession ran from July 2015 through June of 2016. "I worry that the comparisons are going to be much more difficult as we navigate the rest of the year."

Still, with investors largely discounting weaker profit trends, the first-quarter reporting period could bring market volatility, Ameriprise Financial strategists said. The United States initially had a deadline to reach a deal on trade with China by March 1, but the White house has said it needs more time.

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