“Earnings and interest rates. That’s it”
Unfortunately, neither is friendly.
The odds of a 0.25% rate hike in May increased to 87% this morning.
Meanwhile, Q1 earnings season is likely to be rough. S&P 500 companies are expected to report a -6.5% decline in EPS year over year, according to FactSet -- the worst drop since Q2, 2020.
A bit ahead of itself? The stock market’s rally could run out of a steam, warns Top Stocks’ technician Helene Meisler.
Short-term oscillators are overbought, and her intermediate-term measure of advancing to declining stocks will likely be frothy by the first week of May.
Source: The Street