Stocks opened solidly higher. The S&P 500 opened higher this morning despite another dip in oil prices as market participants appear to be taking cues from the beginning stages of re-openings and stimulus. The Bank of Japan removed its quota on government bond purchases and expanded its corporate-bond purchase program. Asian markets closed broadly higher, while across the pond, European markets are solidly in the green in midday trading.
S&P 500 companies report earnings this week. With 122 S&P 500 companies having reported, earnings are tracking to a mid-teens year-over-year decline. Consensus estimates for the next four quarters have been cut by 13% in April, as many companies have pulled their guidance amid the COVID-19 pandemic. More than 170, or roughly one third, of S&P 500 companies will report results this week, including heavyweights Alphabet, Amazon, Apple, Facebook, and Microsoft. Look for a new LPL Research Q1 2020 Earnings Season Dashboard later today.
Another look at negative oil. Last week, crude oil turned negative for the first time in history. It brought with it many worries—and many more questions. We share LPL Financial Chief Investment Officer Burt White’s unique views on why it happened and what could be next for the beaten-down commodity later today on the LPL Research blog.
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