{"id":26083,"date":"2017-04-05T11:01:07","date_gmt":"2017-04-05T11:01:07","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=26083"},"modified":"2017-04-05T11:01:07","modified_gmt":"2017-04-05T11:01:07","slug":"high-hopes-profits-risk-stocks","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/high-hopes-profits-risk-stocks.html","title":{"rendered":"High hopes for profits is a risk for stocks"},"content":{"rendered":"<h2 style=\"text-align: justify;\">\n\t<span style=\"font-size:22px;\"><strong><span style=\"color:#000000;\"><span style=\"font-family:arial,helvetica,sans-serif;\">High hopes for profits is a risk for stocks<\/span><\/span><\/strong><\/span><br \/>\n<\/h2>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">High hopes for profits is a risk for stocks:- Expectations for Wall Street&#39;s first quarterly earnings season of 2017 are high. And that could be bad for stocks.<\/span><\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">Analysts see earnings for Standard &amp; Poor&#39;s 500 companies growing at a 10.2% pace in the January-thru-March quarter, according to earnings-tracker Thomson Reuters I\/B\/E\/S. If that double-digit growth rate is achieved, it will be the best since profits jumped 10.3% in the third-quarter of 2014.<\/span><\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">But those hopes could collide with stock market valuations that are above average, and even pricey by historical standards. The S&amp;P 500 is currently trading at more than 20 times last year&#39;s earnings, Thomson Reuters data show, well above the average price-to-earnings ratio of roughly 15.<\/span><\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">The risk investors face is if earnings don&#39;t come in strong enough to warrant the lofty valuation Wall Street is currently placing on the broad U.S. market. Despite a lull that began in early March, stocks have been bid up sharply since the election of Donald Trump in November. At its March 1 record high, the S&amp;P 500 was up 12% after Trump&#39;s election. But it has pulled back about 1.5% since its peak<\/span><\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">One reason for the rally stalling is the inability of the Republican-led Congress to repeal Obamacare, which sparked fears that Trump&#39;s growth-friendly agenda was in jeopardy.<\/span><\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<br \/>\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\"><span style=\"font-family:arial,helvetica,sans-serif;\">The earning season could hinge on a big rebound in the energy sector, where profit growth is seen surging after losses a year earlier. The market will also fare well if financials and technology stocks deliver on their expected growth of more than 15%.<\/span><\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:8px;\">Source:-&nbsp;https:\/\/www.usatoday.com\/story\/money\/markets\/2017\/04\/05\/what-to-watch\/100042008\/<\/span><\/p>\n<div class=\"fb-background-color\">\n\t\t\t  <div \n\t\t\t  \tclass = \"fb-comments\" \n\t\t\t  \tdata-href = \"https:\/\/www.biphoo.com\/bipnews\/business\/high-hopes-profits-risk-stocks.html\"\n\t\t\t  \tdata-numposts = \"10\"\n\t\t\t  \tdata-lazy = \"true\"\n\t\t\t\tdata-colorscheme = \"light\"\n\t\t\t\tdata-order-by = \"social\"\n\t\t\t\tdata-mobile=true>\n\t\t\t  <\/div><\/div>\n\t\t  <style>\n\t\t    .fb-background-color {\n\t\t\t\tbackground: #ffffff !important;\n\t\t\t}\n\t\t\t.fb_iframe_widget_fluid_desktop iframe {\n\t\t\t    width: 630px !important;\n\t\t\t}\n\t\t  <\/style>\n\t\t  ","protected":false},"excerpt":{"rendered":"<p>High hopes for profits is a risk for stocks High hopes for profits is a risk for stocks:- Expectations for Wall Street&#39;s first quarterly earnings season of 2017 are high. And that could be bad for stocks. Analysts see earnings for Standard &amp; Poor&#39;s 500 companies growing at a 10.2% [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":26084,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[16340,16341,16339,6251,6895],"class_list":["post-26083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-earnings-season","tag-first-quarter-earnings-season","tag-high-hopes-for-profits-is-a-risk-for-stocks","tag-stocks","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/26083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/comments?post=26083"}],"version-history":[{"count":0,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/26083\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media\/26084"}],"wp:attachment":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media?parent=26083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/categories?post=26083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/tags?post=26083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}