Stock market investors are preparing for a lenient week of profit, which may be a decisive stage in the strong recovery from the low levels of last year's key capital indices.
Next week, 113 of the 505 S & P 500
Companies representing slightly more than a fifth or 22% of broadband benchmark components and 13 of the 30 Dow Jones Industrial Average
are presented for quarterly results reporting. Read: Do not worry, Mr President, the media are preparing to pay much more attention to income
All this is the busiest week of the revenue season. Amateur Profit: The E-Commerce Giant Has a History Of Missing Expectations In The Holiday Quarter
Actually, only Thursday will see about three dozen companies in the S & P 500, according to FactSet data.
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Art Hogan, Chief Market Strategist at B. Riley FBR, Inc., MarketWatch said the attack was a potential "turning point" for the stock market, behind the edge, with the S & P 500, Dow and the Nasdaq Composite Index
marks the worst annual decline since 2008. "This is the real point of rotation," Hogan said. About 252, loaded with Nasdaq technology components, or about 9.6% of the index, are scheduled to report earnings. Dow is on a five-week winning streak and surrenders 7.8 percent from its original peak on Oct. 3 to 26,828.39, according to Dow Jones Market Data, the S & P 500 is 9.1 percent of its September 20 record. closed at 2,930.75, while Nasdaq was 11.7% of its peak on Aug. 29 at 8,109.69.
Among those reporting this week are Amazon.com Inc.
FB, -1.01% Qualcomm
and Tesla Inc.
See : Revenue Review for Apple Inc., General Electric and Tesla Inc.
"This week may be the alarm or a signal that companies have enough confidence to go ahead or not," he said.
So far, a fifth or 112 of the S & P 500 companies have already reported, with the majority surpassing analysts 'expectations: 72.3% of companies report higher average analysts' estimates, compared to an average of 64%, but below the average for the last four quarters of 78%, according to data from Refinitiv.
However, 58.0% of companies reported fourth-quarter earnings above analysts' expectations, below the long-term average of 60% and below the average for the last four quarters of 72%, the data provider said. Moreover, expectations for profits were raised by analysts shortly before the start of the fourth quarter among numerous winds.
On Monday, a Morgan Stanley analyst research note, including renowned capital strategist Michael Wilson, has expressed reluctance to capitalize on its shares right now, given recent corporate profits.
"We are hesitant to attract the bullish signal to the broader market, given that (a) the strike bar is significantly reduced, and (b) those areas of the market that see the biggest rallies are also those in which the valuation is in extremis, which is not true for the whole market, "Morgan Stanley's strategists write.
" However, as most stocks are at least 10-15% of the lowest levels driven by high beta names, we think that risk reward is much less attractive at this time, given the many obstacles still "Instead, our conversations with customers have revealed growing concerns about the chance of a market that escapes them, as the media and other market commentators seem to be backing up," wrote Wilson and Morgan Stanley's team. 19659002] Beginning in October, investors are worried about worries about long talks between the US and China on tariffs, signs of slowdown in the economy in Beijing and the rest of the world, the Federal Reserve, which seems determined to raise interest rates, market convulsions and rising fears of an impending recession that can lead to corporate profits.
Although many of these worries remain at the forefront, Wall Street believes that the Fed is at least retreating from the tempo normalizing interest. policy and its balance.
On Monday things are going away, the slowdown in China's economy and the increased cost of material and transpiration of Caterpillar
results according to company.
|13 Dow Components Reporting This Week||Report Date|
| Boeing Co.
BA, -0.48% 19659016]
| Chevron Corp .
| DowDuPont Inc.
DWDP, + 0.36%
| McDonald & Corp
MCD, -0.47% ] 3M Co. .
| Мерк Ко
| Pfizer Inc. .
|Tuesday, 19659063] Friday|
A number of key events will also keep an eye on investors, including voting an alternative plan for the release of Britain by the European Union on Tuesday, an update of the Fed's policy on Wednesday, and the January data should be published on Friday.
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