Stocks Soar As Earnings Season Officially Begins Today Image: Bigstock Stocks closed sharply higher yesterday as bargain hunters raced in before earnings season officially begins. Earnings season has already 'unofficially' begun, but the 'official' start of earnings season begins today when Alcoa reports after the close. Earnings season is always an exciting time since stocks typically go up during earnings season. And the recent pullback has provided even better entry points and lower valuations. We'll get 234 companies reporting earnings between today and Friday. Then 1,019 next week. Another 1,822 the week after that. And 1,294 the week after that. In other news, yesterday's Housing Starts and Permits report showed starts up more than expected at 1.793 million units (annualized) vs. last month's upwardly revised 1.788M and views for 1.750M. Permits also came in better than expected at 1.873 million units (annualized) vs. last month's upwardly revised 1.865M and the consensus for 1.830M. Today we'll get another look at the housing market with MBA Mortgage Applications, and Existing Home Sales. We'll also get the Beige Book report which will cover the overall state of the economy. This is an important report which comes out two weeks before the FOMC meeting (May 3-4). The Fed uses this and other reports to help set monetary policy. At the moment, the market is expecting the Fed to raise rates by 50 basis points to help curb inflation. They also hinted they could begin reducing their balance sheet as early as this next meeting as well. All eyes will be on the Fed in two weeks. But the interest rate moves should be cheered. Because the biggest threat to the economy right now is runaway inflation. And the moves to tamp that down will only serve to strengthen the economic outlook, not harm it. In the meantime, earnings season is expected to further underscore just how strong the economy is. And that officially begins today. See you tomorrow, Kevin Matras Executive Vice President, Zacks Investment Research |
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