Since the stock market bottomed in February, OPEC has talked about the possibility
of capping oil production and central banks have assisted with accommodative
measures and statements. Central banks and OPEC jawboning are a major portion
of the bull/bear tug of war; another relates to economic fundamentals. From CNBC:
U.S. equities will need strong earnings results to continue their remarkable
comeback since hitting their 2016 lows last month, Prudential Financial's
Quincy Krosby said Tuesday. "Whether or not you think Janet Yellen is
going to be accommodative, ... the fact is we're moving closer to where
we need growth. We need fundamentals, we need revenue growth to pick up," the
firm's market strategist told CNBC's "Squawk Box."
Stocks: The View From 30,000 Feet
This week's video kicks off by looking at two similar bullish turns in history
(similar to the move off the February 2016 low). After drawing some relevant
conclusions, the video moves out to a longer-term view by comparing 2016 to
two similar periods from history.
Earnings Season Coming Soon
Alcoa unofficially kicks off earnings season on April 11. As noted on March
15, earnings are expected to decline for five consecutive quarters, meaning
the market has very low expectations. As always, the focus will be on future
earnings guidance.
