U.S. markets open in 2 hours 27 minutes
  • S&P Futures

    4,288.50
    -9.75 (-0.23%)
     
  • Dow Futures

    33,797.00
    -76.00 (-0.22%)
     
  • Nasdaq Futures

    13,653.25
    -28.00 (-0.20%)
     
  • Russell 2000 Futures

    2,019.50
    -4.30 (-0.21%)
     
  • Crude Oil

    88.85
    -0.56 (-0.63%)
     
  • Gold

    1,791.50
    -6.60 (-0.37%)
     
  • Silver

    20.06
    -0.22 (-1.07%)
     
  • EUR/USD

    1.0135
    -0.0030 (-0.29%)
     
  • 10-Yr Bond

    2.7910
    0.0000 (0.00%)
     
  • Vix

    20.11
    +0.58 (+2.97%)
     
  • GBP/USD

    1.2025
    -0.0033 (-0.28%)
     
  • USD/JPY

    134.2340
    +0.9620 (+0.72%)
     
  • BTC-USD

    24,023.54
    -244.80 (-1.01%)
     
  • CMC Crypto 200

    571.26
    -19.50 (-3.30%)
     
  • FTSE 100

    7,549.22
    +40.07 (+0.53%)
     
  • Nikkei 225

    28,868.91
    -2.87 (-0.01%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Earnings: It will be 'key to listen to the forward guidance' in the second quarter, strategist says

In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Sonali Pier, PIMCO managing director and portfolio manager, joins Yahoo Finance Live to examine the outlook on earnings amid the market's current relief rally and the benefits of a strengthening U.S. dollar.

Video Transcript

- Let's bring in Sonali Pier, PIMCO Managing Director and Portfolio Manager. Nice to see you. Let's get back to a point Seana made earlier, the same stocks driving the market yesterday are doing so again. It's those growth stocks, tech names. But why?

SONALI PIER: Thank you for having me. Yes, we are starting to see a little bit of a reversal of the trend in June over the last few days. But I would just highlight that this is to do with some short covering. We're also seeing some, call it relief rally from the initial earnings that we've seen so far, so meaning many earnings are at estimates, at best, and even revising guidance downward, but either beating really poor expectations or at least kind of clearing the air, that relief rally. And so I wouldn't read into this all that much, other than to say that we do have about 50% of the S&P which will report next week, and so we'll have a lot more information in terms of forward guidance as well.

RACHELLE AKUFFO: So then given the earnings that we've already had out so far, whether it's the banks, obviously we also had Netflix coming out yesterday, from what you've heard so far in the forward guidance, how would you characterize how this Q2 earnings season is shaping up?

SONALI PIER: Yeah, and it's kind of why I said Q2 looks to be maybe meeting at best, but we're really looking at those forward guidance revisions that are likely. Because I think, similar to what you just said on United, right, many have made their purchases either earlier and now you're seeing the volumes. Or it's that, for example, there was a lot of demand in retail, and so they bought a lot of inventory, and now there's a mismatch in tastes and fads and/or just simply moving from prior call athleisure to getting to work, going to work and needing more formal attire. Or it could be simply investing in your homes a bit less now that the work-from-home trend is changing or evolving as well. And so I think it's very key to listen to the tone of that forward guidance, and that's where we do expect to see a bit of disappointment.

SEANA SMITH: Well, Sonali, speaking of earnings, the strong dollar has been a topic amongst a lot of those earnings calls that we've gotten over the past week or so. In just the last 24 to 48 hours, IBM mentioned it, Netflix, Johnson & Johnson, just to mention some of those companies that have seen it impact or expect to see an impact because of the stronger dollar. How is the market, how are you factoring that into earnings season and what that could mean going forward into the fall?

SONALI PIER: Yeah, absolutely, the dollar has been strong, and we've seen it across different currencies, the subsequent weakness in others. And as a result-- so, for example, we're more concerned even as recession probabilities increase here in the US on the back of high CPI inflation print last week and the like, but our concern really for Europe is even larger in terms of recession probability. And watching the dollar, it certainly also highlights how those companies may fare and may find it difficult abroad on a relative basis.

SEANA SMITH: Sonali Pier, always great to get your perspective. Thanks so much for joining us.