On Tuesday April 2nd, the stock market rose to a new all-time high at 1570. Now it has taken a couple steps back because of weak economic data...especially the eerily bad employment situation report on Friday.
With virtually no meaty economic reports on tap for a couple weeks it means that earnings season will take center stage. This is another one of those times when the actual earnings is probably not as imporant as the guidance they provide for the future. Meaning that investors will want to make sure the coast is clear.
So, what do you believe will be the outcome of Q1 earnings season?
1) Strong earnings + strong guidance = stocks move higher
2) Strong earnings + weak guidance = stocks move lower
3) Weak earnings + strong guidance = stocks move higher
4) Weak earnings + weak guidance = stocks move lower
5) Other (please explain).
These are the main permutations of what will likely happen. Make your pick and explain why you think this will be the case in the comments section below.