Analysts estimate US tech earnings plunged 15 per cent in the three months through March, with companies hit by high costs and slowing demand.
for investors who have been glued to economic data and Fedspeak for market cues. The earnings would drag the SP 500 lower, said 60 per cent of survey respondents, while data compiled by Bloomberg Intelligence shows analysts estimate a profit drop of 8 per cent for its members in the first quarter.
Such a strong survey consensus raises the bar for disappointment. While the read across to positioning indicators may be a stretch, work on non-commercial CFTC data shows that taking a contrarian view is generally profitable.P 500’s 7 per cent gain in the first quarter has been mostly powered by a handful of the sector giants. Analysts estimate US tech earnings plunged 15 per cent in the three months through March, as companies were hit by high costs and slowing demand.
JPMorgan Chase and Citigroup will provide a first look when they report results on April 14. Analysts still project a profit increase of 4.2 per cent for US financials in the first quarter, data compiled by Bloomberg Intelligence show. The biggest negative factor this season will be a further tightening in financial conditions, according to a third of those polled by MLIV Pulse. An economic slowdown and high inflation are seen as the next biggest risks.
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