Investors expect this earnings season to be a rough one for stocks and will closely watch Apple in particular as a bellwether of global economic conditions.
Farah Elbahrawy for Bloomberg News:
More than 60% of the 724 respondents to the latest MLIV Pulse survey say this earnings season will push the S&P 500 Index lower. That means no end in sight to the dismal run for stocks…
The results underscore Wall Street’s fear that even after this year’s brutal selloff, stocks have yet to price in all the risks stemming from central banks’ aggressive tightening as inflation remains stubbornly high. The outlook isn’t likely to improve any time soon with the Federal Reserve steadfast on hiking rates, likely weighing on growth and profits in the process.
As for stocks to watch in the next few weeks, 60% of survey takers see Apple as crucial. The iPhone maker, which has the heaviest weighting on the S&P 500, will provide insight into an array of key themes, such as consumer demand, supply chains, the effect of the soaring greenback and higher rates. The company reports on Oct. 27.
Survey respondents expect that references to inflation and recession will dominate earnings calls this season. Only 11% of participants said they expect chief executive officers to utter the word “confidence,” underscoring the gloomy backdrop.
MacDailyNews Take: It’s the guidance, or what passes for it these days, that will command the most attention from Apple and others.
See also: Apple to report Q422 earnings results on October 27th – October 10, 2022
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