This Week: Earnings boost needed for SPX500_m to breach 4,200

First quarter earnings season continue this week, along with these other major events that could influence major asset classes:

Monday, April 17

• GBP: Speech by Bank of England Deputy Governor Jon Cunliffe
• USD: Speech by Richmond Fed President Thomas Barkin

Tuesday, April 18

• AUD: Australia March household spending; RBA April meeting minutes
• CNH: China 1Q GDP; March retail sales, industrial production, jobless rate
• EUR: Germany April ZEW survey expectations; Eurozone February trade balance
• GBP: UK February unemployment rate; March jobless claims
• CAD: Canada March CPI
• SPX500_m: Q1 earnings from Goldman Sachs and Bank of America

Wednesday, April 19

• JPY: Japan February industrial production (final)
• EUR: Eurozone March CPI (final)
• GBP: UK March CPI
• USD: Fed Beige Book
• Crude: EIA weekly US stockpiles data

Thursday, April 20

• NZD: New Zealand 1Q CPI
• JPY: Japan March external trade
• CNH: China loan prime rates
• EUR: Eurozone April consumer confidence; ECB March meeting report
• USD: Fed speak; US weekly initial jobless claims

Friday, April 21

• JPY: Japan March national CPI; April PMIs
• EUR: Eurozone April PMIs
• GBP: UK April PMIs and consumer confidence; March retail sales
• CAD: Canada February retail sales
• USD: US April PMIs

 

Regarding results season, expectations are running low with estimates having been continuously downgraded into this quarter. Analysts at FactSet reckon S&P 500 earnings per share will come in at -6.8%, well down from the -0.3% Q1 estimate at the beginning of the year.

This would also be the second quarter in a row of negative earnings growth and signal an earnings recession.

But this grim picture hasn’t stopped the broader market’s strong rebound from the banking stress lows.

Resistance in the S&P 500 will be strong at the psychologically-important 4,200, an area which already repelled stock bulls back in February.

Meanwhile, immediate support at its previous cycle high around 4146.9 is being tested at the time of writing, with stronger support for the week set to arrive at the previous cycle low at 4076.1.