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Get ready for terrible corporate earnings



Revenues probably fell in the first three months of the year. But investors have pretty much passed it by. The Dow is up 13% so far in 2019 and is not far from its all-time high. S & P 500 has increased by 15% while Nasdaq has skyrocketed almost 20%.

The market predicts that profit growth will return to near double-digit levels in the fourth quarter. So the investors must pay close attention to what the CEOs say about the rest of 2019 in the earnings interview.

"Unless this quarterly result is much worse than consensus, it will more importantly be the guide," said Cliff Corso, CEO of Insight North America.

Corso believes that revenues for the whole year may increase by around 5% thanks to strength in the second half. It's not amazing, but it may be good enough to keep the market going ̵

1; albeit in less explosive frequency than in previous years.

"This year's earnings are probably not a recipe for a stronger market return, but it is not a viable option for investors."

Market values: Not too hot. Not too cold.

Hatfield believes the shares are still reasonable, if not necessarily cheap. S & P 500 is currently trading around 17 times earnings forecasts for this year. It is roughly in line with its historical average.

"There are no sectors overheated and imploding right now. The market is not a screaming purchase, but neither is it overvalued. There are still some bargains," Hatfield says, adding that banks and energy stocks are looking very attractive

So investors should look at sectors that will benefit from the continued economic expansion in the United States, said Dec Mullarkey, Sun Life Investment Management Investment Strategy Investment Manager, now it's not time to get dirty and defensive. 19659002] "It's still a good idea to be bullish and susceptible to growth. People will be rewarded for sticking to stocks right now, "said Mullarkey.

2. Banking on banks: JPMorgan Chase and Wells Fargo report earnings Friday JPMorgan Chase CEO Jamie Dimon recently told investors in The company's annual report that the bank's profits gained a big boost last year from corporate tax deductions.

Dimon can talk more about it, as well as his latest criticism of President Donald Trump's last two open-seat elections on the Federal Reserve, in talks with journalists and analysts. [19659013] For Wells Fargo, scandalized business expects the company's search for a new CEO now that Tim Sloan has slowed down.

Investors are hoping for signs that both banks' earnings will improve later this year. flat by JPMorgan Chase in the first quarter and down on Wells Fargo, there are concerns about how low interest rates will affect their businesses.

3. Delta flies high: The airline's giant has already expected first-quarter earnings to be better than expected, thanks to fuel costs rising at a less dramatic rate than it had originally expected.
Delta will report its official results on Wednesday. The stock is a favorite pick of investing legend Warren Buffett. And Delta has kept up better than other US airlines, as it doesn't have any Boeing 737 Max jets in its fleet.

4. The ECB and the Fed focus: The European Central Bank will announce its latest decision on the interest rate on Wednesday morning.

No changes are likely, but expect ECB president Mario Draghi to talk more about the bank's plans to delay interest rate hikes, as well as the new program for cheap loans to banks. Draghi can also record recent weak economic data in Germany and Italy.
Later Wednesday, the Fed will release minutes from the March meeting. The Fed kept prices stable, lowered its economic forecasts and signaled no further interest rate hikes this year. Investors will hunt for clues if any members believe the Fed should cut prices – as both President Trump and his Fed board chairman Stephen Moore have called too late.
5. When you want a streaming star (and Star Wars): Disney will host an investor day event Thursday. Media giant says the event will focus on its streaming media plans, including the upcoming Disney + service.

Investors may also ask about the integration of Fox assets that House of Mouse has just bought, as well as success plans for CEO Bob Iger, whose contract expires in 2021.

Disney could reveal more Star Wars news the next day investor incident. Episode IX Director J.J. Abrams will speak on the Star Wars Celebration in Chicago on Friday, leading to rumors that a trailer and movie title might fall.

6. Coming this week:

Monday – Factory orders in February of February

Tuesday – February February JOLTS job search report; IMF World Economic Outlook

Wednesday Delta Air Lines ( DAL ) LVMH ( LVMHF ) ] and Seng Bath & Beyond ( BBBY ) earnings; US March consumer prices; Fed minutes; ECB interest rate decision; UK GDP and EU Brexit Summit; The Senate to Hold "Technological Censorship" Hearing
Thursday Rite Aid ( RAD ) ) earnings; Disney

( DIS ) investor day; India choice of elections begins

Friday JPMorgan Chase ( JPM ) and Wells Fargo ( ]) earnings; China's Export Data, Britain's Current Deadline for Leaving the EU


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