Investors look to earnings for calming news - Reuters
As reported by Reuters, investors have turned eyes to the US earnings season and the end-of-quarter flows following months of swings in risk aversion on trade war fears, government scandals, tariff threats, and spiking volatility.
Key quotes (source: Reuters)
"Imploding technology stocks and fears of a trade war have pummeled the market in recent days. Given the surge in volatility this year, there is no guarantee that worst is over."
"Analysts predict strong results when reporting season starts up next month, with first-quarter S&P 500 profit growth on track to be the highest in seven years, according to Thomson Reuters data. That follows a blockbuster fourth-quarter period, and recent corporate tax cuts that boosted forecasts for all of 2018."
"Stocks’ rout in early February, and more recent selling following worries over a U.S. trade war with China, Facebook privacy issues and a collapse in other tech leaders, have made investors skittish and more likely to discount the relatively strong economic backdrop that persists."
"next week brings the monthly U.S. jobs report, a potential catalyst for further volatility. A strong payrolls report in early February had helped spark the stock sell-off that drove the S&P 500 more than 10-percent below its Jan. 26 record high - a “correction.”"
"The job report briefly drove up bond yields and touched off worries that the Federal Reserve may need to speed up interest rate hikes. The S&P 500 is now about 8 percent below its record."