It is almost that time again. Earnings season is just around the corner, and this earnings season is very important for the market.
After climbing to record highs following the presidential election, the market has started to cool off a bit as fear rises about President Trump’s ability to follow through on some of his more ambitious campaign pledges.
Following the republican’s inability to repeal and replace Obamacare, a lot of analysts are wondering how they will be able to tackle other big promises such as tax reform and increased infrastructure spending.
The promise of tax reform was a major reason why traders drove the markets to record levels, but Wall Street is taking a pause and the market is a little stuck as concerns mount over whether or not tax reform will actually happen, and if it does what form it will take.
Because there is so much uncertainty surrounding the market right now, this earnings season is going to need to be strong for the markets to resume their upward momentum and reach new highs in the upcoming months.
You can never judge the entire earnings season by just a handful of stocks, but there some stocks that report early in the season that could set the stage for what to expect over the next six weeks.
Let’s look at five early reporters, and what Wall Street expects to see in their quarterly reports.