FXStreet reports that economists at TD Securities note that, while appreciating the bold and rapid deployment of stimulus measures to backstop the market an economy and earnings outlook is still needed to discount risk associated with an outlook.

“What stocks reflect now is not exactly informative or clean. At some point, the economy/growth will need to matter and earnings will be needed to discount the outlook. Looking at the S&P 500 and forward earnings estimates, the two have diverged in a spectacular and uncharacteristic fashion.”

“Calling a top in equities - even if temporary - has been tough for the bears (ourselves included). But we remain comfortable with the view that risk has overshot and a reality check will need to sink in.”

“Markets may view 2792 in the S&P 500 as a notable pivot, this represents the 50% retracement of the all-time highs and March lows. Failure to hold above this level might instill some bearish momentum in risk, just as earnings season continues to unfold.”

U.S. stock-index futures fell on Monday as market participants weighed the latest coronavirus news along with a plunge in oil prices.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Walt Disney (DIS) downgraded to Neutral from Buy at UBS; target lowered to $114

Walt Disney (DIS) downgraded to Neutral from Outperform at Credit Suisse

Boeing (BA) downgraded to Neutral from Buy at Citigroup

DuPont (DD) upgraded to Overweight from Neutral at JP Morgan; target $55

Citigroup (C) upgraded to Buy from Hold at Argus; target $60

FXStreet reports that according to JP Morgan Asset Management, the 1Q20 earnings season will provide an important first look at how the ongoing pause in global activity is impacting corporate earnings and what investors should expect over the remainder of the year.

“We expect 1Q20 S&P 500 operating earnings to be down -14.6% from a year prior.”

“S&P’s expects 2020 operating earnings per share to come in at a level of $146.57, representing a -6.7% contraction from a year prior. This stands in contrast to pro forma estimates, which suggest 2020 earnings will decline -11.9% in 2020 to a level of $146.57. We are less optimistic, and believe earnings will contract -20% this year; in our opinion, consensus has some catching up to do.”

“We continue to advocate for a focus on quality with a dash of cyclicality. This means embracing sectors like health care, technology and consumer staples, and taking advantage of underweights in highly-levered sectors like energy and REITs to maintain benchmark exposure to sectors like financials.”

April 20

After the Close:

IBM (IBM). Consensus EPS $1.80, Consensus Revenues $17620.14 mln

April 21

Before the Open:

Coca-Cola (KO). Consensus EPS $0.45, Consensus Revenues $8332.86 mln

Travelers (TRV). Consensus EPS $2.83, Consensus Revenues $7305.17 mln

After the Close:

Netflix (NFLX). Consensus EPS $1.64, Consensus Revenues $5746.09 mln

Snap (SNAP). Consensus EPS -$0.08, Consensus Revenues $415.84 mln

April 22

Before the Open:

AT&T (T). Consensus EPS $0.87, Consensus Revenues $44750.33 mln

Delta Air Lines (DAL). Consensus EPS -$0.87, Consensus Revenues $9464.93 mln

After the Close:

Alcoa (AA). Consensus EPS -$0.18, Consensus Revenues $2368.78 mln

April 23

Before the Open:

Freeport-McMoRan (FCX). Consensus EPS -$0.17, Consensus Revenues $2975.31 mln

After the Close:

Intel (INTC). Consensus EPS $1.26, Consensus Revenues $18606.02 mln

April 24

Before the Open:

American Airlines (AAL). Consensus EPS -$2.22, Consensus Revenues $8923.88 mln

American Express (AXP). Consensus EPS $1.64, Consensus Revenues $10601.46 mln

Verizon (VZ). Consensus EPS $1.23, Consensus Revenues $32434.71 mln