Equity Analysis and News
- S&P 500 | Eyes on 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.
Source: Thomson Reuters (Q1 Performance)
S&P 500 Price Chart: Daily Time Frame (Aug 2018 – Apr 2019)
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--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
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