This article was originally published on ETFTrends.com.
U.S. markets and stock ETFs slipped as traders grow cautious ahead of the earnings season with big bank names reporting Friday.
“We’ve had this very large rally without much of a breather since Christmas,” Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, told Reuters. “And now we’re waiting for confirmation from the economic data or from earnings that the rally we’ve seen is justified.”
Traders and analysts have evinced concern over the coming earnings season, especially as companies have lowered profit forecasts on their first quarter results, the Wall Street Journal reports. Consequently, trading activity has slowed while many investors take a wait-a-see approach before making big bets ahead of the corporate announcements - on Wednesday, fewer shares changed hands than any other day of the year so far.
“Markets are in a wait-and-see mode, waiting for the next catalyst,” U.S. Bank Wealth Management chief equity strategist Terry Sandven, told the WSJ. “Global growth remains sluggish but that also means the Fed has shifted to a cautious tone, which provides some comfort for markets.”
J.P. Morgan and Wells Fargo will kick off the earnings season on Friday, with several other prominent corporate names expected to file quarterly earnings next week.
“Expectations for first-quarter results have been ratcheted down on the heels of sluggish global growth, so the bar is low and it could set the stage for upside surprises,” Sandven added.
Traders have also closely monitored developments between the U.S.-China trade talks. Beijing has tried to sweeten its offer by opening its cloud-computing sector to foreign companies in a bid to push along a trade deal after U.S. negotiators rejected an earlier proposal.
For more information on the markets, visit our current affairs category.
POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM
- SPY ETF Quote
- VOO ETF Quote
- QQQ ETF Quote
- VTI ETF Quote
- JNUG ETF Quote
- Top 34 Gold ETFs
- Top 34 Oil ETFs
- Top 57 Financials ETFs
- ETF Industry Game Changer: SEC Gives Nod To Non-Transparent ETFs
- Using Merger Arbitrage as a Hedge Against Market Volatility
- A Better Way to Determine Risk Exposure for Growth ETF Investors
- Report Findings Highlight Fake Bitcoin Trading on Unregulated Exchanges
- How to Manage A Mature Bull Market With Macro-Themed ETF Strategies