US stocks opened lower. US stocks are struggling to hold last week’s gains this morning amid ongoing concerns about the risks associated with economies’ re-opening. The strength of the rally has led some investors to question whether they are in sync with reported economic data as they consider the prospects for a tricky economic recovery. Asian stocks were mostly higher overnight, with the exception of China and South Korea, with the latter seeing a new wave of COVID-19 infections over the weekend. Europe’s markets were solidly in the red in midday trading.
Q1 earnings surprised to the upside. That’s the good news, with the average earnings “surprise” tracking to about 2% despite economic disruptions in March. However, Factset estimates for S&P 500 Index earnings over the next four quarters have been cut by 18% since March 31 as many companies have withdrawn guidance due to uncertainty around the timing and trajectory of the economic recovery. Estimates may have further to fall based on historical declines in recessions.
LPL Financial on CNBC. LPL Financial Senior Market Strategist Ryan Detrick was on CNBC’s The Exchange with Tyler Matheson on Friday, discussing the positive trends in COVID-19 testing. You can watch the full interview here and we will discuss in more detail later today on the LPL Research blog.
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