Q1 earnings report confuses investors
The time for Q1 earnings reports is coming. What can investors look forward to?
No forecasts seem to be certain. Latest news about pandemic have been confusin and the spread dynamic is volatile - the number of new cases remains flat in some regions and still rises in others. Stocks have been extremely volatile and all types of companies have been reporting shocking news.
US Securities and Exchanges Commission has encouraged American companies to stop paying too much attention to “historical stuff” and instead focus on the business's current situation and the upcoming challenges that the virus might bring. However, most companies have no clear data that they might use to build models about the future.
The sector with the most visibility for the coming season is consumer goods. Stocks of food and drink companies, as well as supermarkets, have been among the best performers. Extra size clothes manufacturers have been heading for a rebound during the few last weeks.
However, Goldman Sachs report states that uncertainty is still strong and that the American trading is still based on unstable data, that can change any day.