As earnings season rolls on, investors will likely be distracted by quarterly earnings, which could cause market fluctuations as they digest companies' reports. So don't be surprised if you see company stocks or even entire industries swing in either direction based on what was said in reports. Companies that do well could be rewarded, while underperforming companies might be punished.
Like last week when big banks started reporting earnings, if corporations express concern about the future economic climate, investors could begin to fret over an upcoming recession and you might see your investment accounts take a hit.
The Federal Reserve kicks off its first policy meeting of the year at the end of the month. And we'll receive a few pieces of economic data along the way that might make investors nervous, or give way to cautious optimism about the future path of rate hikes.
One of those key pieces of economic data will come from tomorrow's retail sales report set to be released by the Census Bureau. Economists are expecting sales to drop by 1%, a steeper decline than the month prior, as shoppers pull back on spending. Retail sales are important because consumer spending comprises roughly 70% of the U.S. economy. When we all shop less, the economy starts to slow and falter. While the central bank wants the economy to do just that, a slowing economy will raise alarms—again—that we could be tipping into a recession.
- Kristin
0 Response to "Earnings Season Rolls On—What Will It Tell Us?"
Post a Comment