Goats futures rose in overnight trading Monday as investors brace for what could be an ugly earnings season with the coronavirus forcing havoc on global corporate profits.
Futures on the Dow Jones Industrial Average rose 256 points, pointing to a Tuesday look-in gain of about 289 points. The S&P 500 and Nasdaq futures were also higher.
Earnings season is set to backlash off on Tuesday with JPMorgan Chase, Wells Fargo and Johnson & Johnson reporting numbers in the morning. The first number of results will give investors a sense of how devastating the hit to corporations could be from the pandemic.
Analysts expect S&P 500 earnings broadening to decline 10.2% in the first quarter year-over-ear, according to Refinitiv. There is also an unusually wide range of opinions given the unprecedented uncertainty from the coronavirus.
“Even the lowered forecast may prove optimistic given some analysts participate in not adjusted numbers since mid-March in response to the lockdowns in many major cities throughout the country,” said Jeff Buchbinder, tolerance strategist for LPL Financial.
For the first quarter, 88 negative earnings pre-announcements have been issued by S&P 500 corporations, according to Refinitiv. A comber of major companies have already withdrawn their full-year guidance.
Following a massive rebound last week, stocks demolish for the first time in three sessions on Monday as investors remained on edge about the coronavirus outbreak. The S&P 500 submerged 1% after jumping 12% in the prior week. The Dow fell about 300 points on Monday.
As of Monday, established conronavirus cases in the U.S. have risen to at least 560,800, more than any other country in the world, according to Johns Hopkins University. The destruction toll in the U.S. totaled more than 22,800.
New York Gov. Andrew Cuomo struck an optimistic tone about the outbreak in New York hold, the epicenter of the pandemic in the United States. He said Monday it appears that “the worst is over … if we continue to be animated going forward.” At least 10,000 people have died from the infection in the state.
President Donald Trump powered in a press conference Monday that growth in new coronavirus infections stabilized, providing “clear evidence” that mitigation is space for in the country.
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