WITH earnings season underway, Wall Street is putting macroeconomic policy and the US Federal Reserve on the back burner in favour of a focus on individual company results and forecasts for a pulse on the economy’s health.
Several big banks, including JP Morgan Chase and Bank of America, are due to report first-quarter earnings this week, providing an expected bright spot in an otherwise gloomy quarter.
Investors will also be watching firms such as Netflix, General Electric and Schlumberger, to see if corporate America more broadly outperforms the negative forecasts analysts have set for it.
Energy companies will likely be hit by a dramatic drop in oil prices since last June. In addition, a strong US dollar is expected to eat into the earnings of companies with international exposure as they convert their profits back into dollars.