As the U.S. Presidential election approaches, Wall Street and large Hedge Funds are sitting on the sidelines as uncertainty within the stock market is at an all-time high. Polls cannot exactly be trusted – as we found out four years ago.
As there isn’t a lot of trading range and probably won’t be for the next couple of weeks until Nov 3, what are traders/investors to do to make money right now?
Well, we are in the midst of another earnings season. The big banks reported last week – they held up pretty well in terms of earnings, but this did not correlate to their stock prices.
By the end of the week, a quarter of the S&P 500 companies will have reported. This should give us a clear picture of how well companies have held up during these economic dark days
We are not only looking at the absolute numbers of each earnings report; we are looking to see how the stock market reacts to each piece of news. Also, we are very interested in the guidance each CEO has in each report. For example, if a large majority of CEOs lower their guidance and become increasingly pessimistic, this could change the overall sentiment of the stock market.
Watch the full interview to see which stocks reporting earnings we are following closely this week.