T.C | From today until Thursday, companies representing 40% of the S&P500 will present their results for the first quarter of this year. Alphabet and Microsoft today, Tuesday. Apple and Facebook on Wednesday, Amazon on Thursday… and expectations are very high indeed. For example, in the case of Apple, a 32% advance in profits is discounted, while in the case of Tesla, which presents on Tuesday, a +71% increase in both revenues and profits is expected.
DWS | How bad could things get for corporate earnings, both in the U.S. and worldwide? In the face of a global health emergency, the short answer is that it remains hard to tell. Large parts of the world are under Covid-19 lockdown, delivering tremendous short-term shocks to the supply side and threatening to bring demand destruction on a massive scale. The disruptions will be comparable or worse than after September 11, 2001 and the onset of the financial crisis in 2008.
Global equities have held up fairly well in light of the generally negative news flow, entirely driven by the United States, where stocks are up 9.6% year to date, while the euro area, Japan and emerging markets have underperformed. In this context, the Research team from AXA IM points that earnings momentum remains “robust” with the second quarter earnings season posting “positive growth” and “surprising” on the upside across most major regions.