This week, about two dozen S&P 500 companies including JP Morgan, Wells Fargo and General Electric will be kicking off earnings season with their much-anticipated quarterly statements. The information from them could be a good indicator if the disappointing jobs report released on January 10 is a sign that the economy is taking a turn for the worse.
In an interview with CNBC, Bob Doll, chief equity strategist at Nuveen Asset Management, said that the information released this week should not be a make-or-break moment for most individual investors.
"I think the data is going to be benign," Doll told the media outlet. "I think it's going to be more about earnings and whether companies can say they have a little visibility."
Doll also noted that due to last year's strong market that resulted in record highs for the Dow and S&P indices, he predicts that there will be a 10 percent correction. He added, however, that it is unclear whether this will occur this early in the year. In addition, investors will also need to wait and see how the upcoming tapering of the Federal Reserve's bond purchases will factor into this situation.
This week, many companies will be discussing their outlook not only in earnings reports, but during public events as well. Health industry executives will be descending upon San Francisco for the JP Morgan Health Care Conference, while car makers will be revealing new information and models at the annual Detroit Auto Show.
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Categories: Stock News