Can Earnings Help?
The start of fourth quarter earnings season may help the stock market find its footing. Earnings season starts this week (January 11 – 15) and may be a positive catalyst that turns the market’s attention away from China. Amid widespread pessimism, the news out of corporate America may be well received. However, due to the drags from oil and the strong U.S. dollar, the fourth quarter may bring more of the same lackluster headline results seen in recent quarters and, as a result, may not provide much of a boost for stocks. This earnings season presents an opportunity for corporate America to convince markets that a ramp-up in overall corporate profits may still come in 2016.