The Week Ahead North America.: Q1 Earnings to Dictate Market Direction
(CEP News) - First-quarter corporate earnings season kicks into full swing next week and market sentiment will be the dominate driver for trading.
Francis Campeau, equities broker at MF Global Canada, said it appears the recent run in North American equities may still have further to run next week.
"It seems that most of the bad news has been priced in," he said. "The technicals are also starting to turn positive, which could add some traction to the rally."
Bank earnings next week, which include Goldman Sachs, on Tuesday, JPMorgan on Thursday and Citigroup on Friday, will be the most closely watched. Markets are relatively optimistic ahead of the bank earnings following positive guidance from Wells Fargo on April 9.
"The financials have been the most beaten up in this down turn," said Campeau. "And positive earnings will drive markets higher."