All eyes on Apple as earnings season looms
Investors expect this earnings season to be tough for equities and will be watching Apple, in particular, as a wake-up call to global economic conditions.
Farah Elbarawy for Bloomberg News:
Over 60% of 724 respondents to the latest MLIV Pulse survey say this earnings season will push the S&P 500 index lower. This means that the sad race for action is not in sight …
The findings underscore Wall Street’s fear that, even after this year’s brutal sell-off, equities still have to discount all the risks stemming from the aggressive central bank squeeze as inflation remains stubbornly high. The outlook is likely not to improve anytime soon with the Federal Reserve steady on rate hikes, which likely weighs on growth and profits in the process.
As for the actions to watch in the coming weeks, 60% of survey respondents consider Apple crucial. The iPhone maker, which carries the biggest weight on the S&P 500, will provide information on a number of key topics, such as consumer demand, supply chains, the effect of the greenback’s surge and higher rates. The company reports on October 27.
Respondents expect references to inflation and recession to dominate earnings this season. Only 11% of respondents said they expect CEOs to pronounce the word “trust”, underscoring the gloomy scenario.
MacDailyNews takes: It’s the guide, or what passes for it these days, that will get the most attention from Apple and others.
See also: Apple to report 422nd quarter earnings results from October 27 to October 10, 2022
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