• 556 days Will The ECB Continue To Hike Rates?
  • 556 days Forbes: Aramco Remains Largest Company In The Middle East
  • 558 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 958 days Could Crypto Overtake Traditional Investment?
  • 963 days Americans Still Quitting Jobs At Record Pace
  • 965 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 968 days Is The Dollar Too Strong?
  • 968 days Big Tech Disappoints Investors on Earnings Calls
  • 969 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 971 days China Is Quietly Trying To Distance Itself From Russia
  • 971 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 975 days Crypto Investors Won Big In 2021
  • 975 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 976 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 978 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 979 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 982 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 983 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 983 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 985 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Earnings Projections, Support, and Resistance

Earnings season kicks off in full force today with Alcoa Inc. (AA), the biggest U.S. aluminum producer, scheduled to announce first-quarter earnings after the market close today. Alcoa is the first member of the Dow Jones Industrial Average to report.

While it may not feel that way on Main Street and in the housing sector, earnings at public companies are healthy. According to Bloomberg:

  • Corporate profits probably rose to a record last quarter.
  • Earnings for Standard & Poor's 500 Index companies probably gained 12 percent in the three months ended March 31, from a year earlier, according to analysts' estimates.
  • Profits of Stoxx Europe 600 Index companies likely increased 21 percent.

We mentioned back on March 21 that materials, energy, and industrials were well positioned. Not surprisingly, they are projected to report strong earnings growth (see below). We continue to have a tentative bullish outlook. We still like mid-caps.

Earnings projections by sector

The markets have been treading water waiting for earnings - stocks have stalled near a logical point (see below).

Support and Resistance

Stocks have also held at a logical point near the thin blue line below (monthly chart).

Support and Resistance

Buyers have been less enthusiastic in recent sessions and momentum has slowed considerably in the short-term. If we pull back, the next areas of basic support are shown below.

Support and Resistance

A little more noisy view of the S&P 500 shows three key areas to watch on the downside. We would tend to exercise some patience as long as the levels shown below hold.

Support and Resistance

 

Back to homepage

Leave a comment

Leave a comment