NEW YORK, April 15: US stocks could climb next week, with analysts expecting companies to report strong profits as the quarterly earnings season gets into high gear.
But traders will keep a wary eye on rising oil prices and bond yields, which could limit any market gains.
If earnings and outlooks top analysts’ forecasts, that could relieve some of the anxiety about inflation.
Investors are on inflation alert after oil rebounded to nearly $70 a barrel this week and benchmark US bond yields rose above 5 per cent for the first time in almost four years.
Wall Street will get March data on inflation next week, when the government releases the US Producer Price Index on Tuesday and the US Consumer Price Index on Wednesday.
Stocks rallied through March in anticipation of a strong earnings season, driving major US stock indexes up near five-year highs.
The rally has been based on strong earnings for the first quarter against higher energy prices and interest rates, said Marc Pado, US market strategist for Cantor Fitzgerald & Co. That’s the battle. And earnings tend to win out in April, historically.
Tech bellwethers Intel Corp. and Apple Computer Inc., plus some big Internet names, Google Inc. Yahoo Inc. and eBay Inc, will report quarterly results next week. That should give investors a better picture of the tech sector.
A flurry of earnings reports will come from the banking sector, with earnings due next week from Citigroup Inc. and JPMorgan Chase & Co, both Dow components. Results are also expected from Bank of America Corp, Merrill Lynch & Co.and other financial services companies.—Reuters
