Dan Celia: Are Markets ‘Writing Off’ First-Quarter Earnings?

Dan Celia: Are Markets ‘Writing Off’ First-Quarter Earnings?

April 15, 2020

PHILADELPHIA—Nationally syndicated host and biblical investing authority Dan Celia is looking at this week’s markets, the start of earnings season and what earnings reports will mean for the rest of the year.

“The markets were off to another rough start this week, with the Dow Jones Industrial Average and the S&P 500 falling for the first time in three sessions,” Celia said. “This is as investors continue to weigh the coronavirus outlook while bracing for the start of corporate earnings season. The first quarter reporting started off with JPMorgan Chase and Wells Fargo, two of the big financials, both reporting earnings misses on Tuesday, which translated to lower stocks by late morning.

“Perhaps I’m wrong about this, but I think the markets are pretty much writing off the first quarter, just like they’ve written off economic data,” Celia added. “I don’t think they’re expecting anything, so it will be hard to surprise the markets with poor earnings. The only thing anyone is looking at is the unemployment rate, which continues to increase by the week. So first-time unemployment claims, which were already over 16 million in the past three weeks, will be a number everybody is watching for Thursday morning.”

The markets are also fully aware, Celia said, that more astronomical unemployment rates and very poor GDP growth are on the horizon.

“None of that is too much of a concern and it’s not going to impact markets,” he continued. “Caterpillar, one of the Dow components, had the worst-performing stock day in the Dow on Monday, falling more than 8%. This is after Bank of America downgraded the stock. Yet, everyone is taking all that in stride. I do think, however, that markets might be a bit optimistic for the second quarter. I don’t think the second quarter will be very good, but from an optimistic standpoint, there is a possibility that by the end of the third quarter, we could see the start of revving up the economy, moving toward a better third quarter and possibly a very good fourth quarter.”

Celia discusses these and other global and economic headlines on his daily, three-hour Financial Issues program, heard on more than 660 radio stations and several television networks nationwide, including FISM.TV, viewed on several post-cable television platforms and online.

Read more about Celia, FISM and “Financial Issues” or visit the FISM website, its Facebook page, on YouTube at Financial Issues with Dan Celia or on Twitter @financialissues; download the FISM app here.

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To book Financial Issues Stewardship Ministries’ Dan Celia, contact Media@HamiltonStrategies.com or Patrick Benner, 610.584.1096, ext. 104, or Deborah Hamilton, ext. 102.