Investors are looking for some good news from corporate earnings in the week ahead, after a choppy session Friday and a negative week for the market. Earnings so far have not done much to lift the stocks of the first few companies reporting. There's a diverse group on the calendar, including Netflix, Coca-Cola, Intel, Honeywell and American Express. Strategists say they are watching to see if earnings, expected to be up more than 66% in the second quarter, will give a lift to stocks.
Investors are also watching the surprise decline in the yield of the 10-year Treasury note, the closely-watched benchmark. Bond pros say there are a number of reasons for the decline, but worrisome to stock investors is that the falling yield could be signaling a slowing economy down the road.
One worry has focused on the potential for a more prolonged period of high inflation that could force the Fed to tighten policy and raise interest rates sooner than expected. "I think the continued drop in the bond yield is scaring investors overall — but particularly equity investors," said one strategist.
Post a Comment