LIVE MARKETS-S&P 500 outlook ratio signals optimism as Q1 earnings season nears
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S&P 500 OUTLOOK RATIO SIGNALS OPTIMISM AS Q1 EARNINGS SEASON NEARS
The ratio of negative-to-positive outlooks from S&P 500 .SPX companies for the first quarter of 2026 so far is below that of recent quarters and a long-term average, according to LSEG data.
As of late last week, S&P 500 companies had issued 53 negative EPS preannouncements compared with 61 positive ones, resulting in a negative-to-positive outlook ratio of 0.9 to 1.
That compares with a long-term average (since 1997) of 2.5 and the prior four-quarter average of 1.7.
Investors may be watching preannouncements closely given the Iran war, which began in late February, and the subsequent spike in oil prices that could impact a range of U.S. companies including in the consumer-related and materials sectors.
In addition, estimated earnings growth for the S&P 500 for the first quarter has held steady at 14.4% since January 1, based on LSEG data.
Earnings for the first quarter for U.S. companies get underway in mid-April, with results from some of the big banks slated to report first.
(Caroline Valetkevitch)
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