Analsyts at JP Morgan expect companies to beat in earnings, but that’s not necessarily enough to send prices higher.
“The likely earnings beats do not necessarily mean that equities will advance during the reporting season,”
JPM argue that weighing on prices are:
- the equity market has already strongly re-rated during Q1
- fears over sticky inflation
- fears over geopolitical uncertainty
- interest rate concerns, these “spiking for the ‘wrong reason’”
S&P 500 daily: