An epic stock market is facing a major test in the coming weeks as investors learn what managers expect in the coming periods for profits and earnings.
The earnings season of the fourth quarter kicked off seriously on Friday with better-than-expected profits from some of the country’s biggest banks. Despite a record quarterly profit at JPMorgan Chase & Co. and some highlights at Citigroup Inc. and Wells Fargo & Co., all three shares fell, with Wells and Citi each falling more than 6%.
The market response highlights the interests as large companies begin to share quarterly results, and, more importantly, their outlook for the coming quarters. Although the results were not terrible, equities were hit hard, reflecting the increase in investor expectations as bank shares climbed more than 10% for 2021 on Friday’s trading.
The rise of key indices to new highs this year, despite an accelerating toll on the coronavirus and questions about how it will affect the economic outlook, underscores the pressure on big business executives to express how they expect results in 2021 will improve. earnings during the S & P’s rise of about 70% from the intraday low in March last year are considered acceptable by investors because many expect a sharp setback this year. According to companies, they can expect to be punished with projections that are not too much.
“Whether they had a good quarter or not, it’s all about the next,” said Kimberly Woody, senior portfolio manager at Globalt Investments, which manages $ 1.9 billion. “Good future news is praised in this market.”