Investors on Edge Ahead of Earning Season

Investors on Edge Ahead of Earning Season


Equity Analysis and News

S&P 500 Outlook: Investors on Edge Ahead of Earning Season

Source: Thomson Reuters, DailyFX

S&P 500 |

Despite several key risk events throughout the week, volatility has remained subdued, which has been made apparent by the sideways price action observed in the S&P 500. The change on the week has been a meagre 0.15% decline. However, as the global growth outlook appears to be softening, the upcoming earning season will be crucial for investors on whether company executives echo these concerns. April 12th will see the official start of the US earning season with financial names JP Morgan, PNC Financial and Wells Fargo reporting before the bell.

Company

Market Cap

Time of release (BST)

Expected EPS

Expected Revenue

JP Morgan (JPM)

$344.8bln

11:55

$2.32

$28.07bln

PNC Financial (PNC)

$58bln

11:55

$2.59

$4.25bln

Wells Fargo (WFC)

$221.6bln

13:00

$1.08

$20.87bln

Throughout the first quarter, the financial sector (XLF) has underperformed the broader market (S&P 500) with gains of roughly 8% relative to the 13% rise in the S&P 500. Factors behind this have bee due to the change in stance from the Federal Reserve who moved to a patient stance with regard to rate hikes amid the slowing down in US growth.

S&P 500 Outlook: Investors on Edge Ahead of Earning Season

Source: Thomson Reuters (Q1 Performance)

S&P 500 Price Chart: Daily Time Frame (Aug 2018 – Apr 2019)

S&P 500 Outlook: Investors on Edge Ahead of Earning Season

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— Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

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