Ever since recession has started, the stock market has been put in an inconsistent state. Lately, companies and analysts have been facing difficult times with the stock market. Sadly, if the earnings of US companies will continue to be unimpressive for the rest of the profit season, Wall Street will be facing a tough time defending the market at a nine-months high.
Strategists still feel the need to push higher in facing this resistance. This is despite the US economy starting to recover which slowly displays stronger momentum. The deal with Greece is also under negotiations.
The S&P (Standard & Poor) Index has already increased by 8% which exceeded the forecast of analysts. However, since the earning season has begun, there has been no reported good news on the stock market.
According to the head of equity research, Robbert Van Batenburg, the earnings have come in a more disappointing state. In fact, he’s not expecting any bright lights for the market for this week.
The Index which started in May 2011 and ended on the 17th of February had 1,361 points. Reuters forecast expected it will end with 1, 340 points.
S&P’s earnings have been beating the estimates of Wall Street. Sixty-four percent of the analysts’ expectation has been exceeded by companies. The last week of February is seen as the last time of displaying earnings. We will definitely expect all eyes are on Europe and US economy for its new-home sales to be seen this week.