Why are the results estimates a key risk of the market

Listen and subscribe -s to open the offer Apple podcasts, Spotify, Amazonian music, YouTube Or wherever you find your favorite podcasts.

Trilling $ Trilling Question Markets are trying to find out: If you think the revenue of head 2025 loves in the middle of the The Trump Administration’s trade war.

“I don’t think ignoring (estimates) is the correct word. I think you have to take in some context with them. And what I mean by this is to see the numbers: see the earnings of earnings and income we get” Richoltz Wealth Management Market market strategist, Callie Cox, told Yahoo Finance Editor Brian sozzi above Opening offer Podcast (previous video; listen below).

The first quarter’s earning season generally goes well, as it is the last quarter before the effects of Trump’s rates begin.

S&P 500 (^Gspc) The growth of the results of the quarter is monitored by 7.9% year -on -year, according to Barclays data. Revenue surprises upward at an average of 10.2%, compared to a long -term average of 5.2%.

Domestic names in Apple (AAPL), Alphabet (Googo, Googl), and Microsoft (Msft) They have impressed the street with its results.

But if S&P 500 companies could reach their estimated EPS growth rate of 10%, and so are the prospects for their valuations.

“I think what worries a lot of people in Wall Street is that they feel like the worst is still to get there,” COX warned.

With fall -related fall to everyone’s mind From the executives to the consumers, the stocks have been indicated as the investors seek reasonable value.

The markets fell after the “liberation day” in early April, hitting a fund on April 7, only to bounce during the month as the earnings reports entered.

Although there have been winners this season of earnings, it has not been difficult to find the struggles.

Coca-cola (This) President and CEO James Quincey told sozzi to Yahoo Finance That prudent consumers buy less from supermarkets.

“So this is where the weakness was focused, which I think is partly an indication of some of the profitability pressure for the lower income consumer and some of the geopolitical reaction,” said Quincey.

Starbucks (Surprise) Recognized CEO Brian Niccol Consumers’ weakness in an interview with Sozzi. The comparable sales of the Coffee Giant America America dropped by 1% in the quarter.

“We continue to return to expectations for reality,” Cox said.

To maintain a more based perspective on volatile background, COX advised investors to join their investment plans instead of sale or purchase of impulse.