by winston » Sun Apr 14, 2019 8:03 am
Earnings Season Starts With a Bang
Friday started another earnings season with JP Morgan Chase, Wells Fargo and PNC Financial all posting results.
JP Morgan reported record profit and revenue, Wells Fargo beat expectations on quarterly earnings. PNC was the laggard in that it only met analyst expectations, but reported higher expenses and provision for credit losses.
Earlier this year the conventional wisdom around Q1 2019 earnings was about how bad they would be. Mostly this is because last year's first quarter was so outstanding that this year can't help but look bad in comparison.
So, what's driving all the buying?
Neil George, Editor of Profitable Investing attributes it to 4 factors:-
No. 1 is fear of missing out, (also known as "FOMO").
No. 2 is that the Federal Reserve Federal Open Market Committee (FOMC) finally got its messaging right.
No. 3 is the bond market.
No. 4 is the US dollar.
But he does see some potential downside for some stocks -- especially for one sector. As earnings roll in, Neil is watching the tech sector very closely and notes that big earnings disappointments in those stocks could drive everything lower.
Louis Navellier, editor of Growth Investor, pointed out that at least one of the signs he tracks is pointing to more stock market gains.
Historically, April is one of the seasonally strongest months of the year.
Source: InvestorPlace
It's all about "how much you made when you were right" & "how little you lost when you were wrong"