The market is bracing itself for some heavy blows these coming trading days as companies are set to unveil their first-quarter profits. The dismal outlook of profit reports pose a huge threat on Wall Street’s rally that it has amazingly sustained for the past five trading weeks.
Fort Pitt Capital Partners senior equity analyst Kim Caughey said, “Recessions are a great time to figure out who is winning and who is losing. Overall, it’s been a terrible quarter. That’s no surprise. But seeing who is holding it together is important to investors.”
Two industry giants have already been reported to have cut profit projections. Aluminum giant Alcoa reported that lost 59 cents a share last week. Aircraft manufacturer Boeing has announced cuts not only in profit projections but also with production as well.
Companies that are due for profit reports include: Citigroup, JPMorgan Chase, Intel, General Electric, Johnson & Johnson, Google and Nokia. Government reports on housing, manufacturing and retail sales are also due this week, all of which can play an important part in how the market shapes up.
Source: CNN
