Optimism over earnings explains some oof the S&P 500’s strength in the face of fighting in the Middle East.
Analysts estimate companies in the index will grow their profits by 11.9% in the three months through March, according to data compiled by Bloomberg Intelligence. That compares to a forecast of 10.9% before the war.
JPMorgan Chase is scheduled to kick off earnings season on Tuesday, April 14, before the U.S. market opens. Analysts expect earning per share of $5.40–$5.42, roughly 7% year‑on‑year growth versus year-earlier quarter. The consensus estimate of $5.40 is up from $5.33 one month ago and $5.20 three months ago.
I think this is amazingly strong positive sentiment give the uncertainties of the Iran war.
“We haven’t seen a major drawdown, and that suggests retail investors are continuing to buy into weakness,” Mark Hackett of Nationwide told Bloomberg “If tensions begin to ease, institutions may have to move quickly off the sidelines, and that could create a powerful rebound.”
It’s important for investors to not get overly bearish, especially during geopolitical events, which can change course at any time, according Paul Stanley at Granite Bay Wealth Management said to Bloomberg.
“Markets may remain volatile for the next several weeks until earnings season begins in mid-April, as earnings season may help the markets refocus back to fundamentals, the economy and AI,” he said.
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