More Firms Set to Reveal Forecasts Even As Economy Sours

Companies are entering earnings season amid turbulent markets and an escalating trade war.

This week will bring more bank earnings, but also early tech results from firms including ASML Holding, Netflix, and Taiwan Semiconductor Manufacturing.

This week will bring more bank earnings, but also early tech results from firms including ASML Holding, Netflix, and Taiwan Semiconductor Manufacturing.

Investors are expected to focus more on year-ahead forecasts and management commentary than on the actual numbers, Teresa Rivas and Janet H. Cho reported for Barron’s Daily.

BlackRock CEO Larry Fink told CNBC on Friday that markets are underestimating how high inflation might rise and emphasized the urgent need for a trade deal with China.

He said the “power of U.S. capitalism” remains strong, but added that the U.S. is currently acting as a destabilizing force globally. Consensus earnings-per-share estimates for the S&P 500 still project double-digit growth at $267 this year, though even modest tariffs could hinder that progress.

Companies may be reluctant to lower full-year guidance now, but without greater clarity by next quarter, revisions may be inevitable.

Last Wednesday’s 90-day tariff reprieve offered a brief reprieve for markets, which David Lefkowitz, head of equities for the Americas at UBS Financial Services, described as a possible inflection point.

Still, he warned that trade negotiations will remain difficult, making CEO commentary especially crucial this earnings season. Many companies may be holding out hope for favorable trade deals.

About 130 countries, including Japan, South Korea, and India, have reportedly entered negotiations with the White House, according to National Economic Council Director Kevin Hassett, who told CNN that delegations are arriving with “great, great offers.”

Meanwhile, Tavis McCourt of Raymond James noted that the S&P 500 entered this sell-off at rich valuations reminiscent of the 2001 recession, suggesting there may be more pain ahead.

He advised investors to shift their focus toward 2026 earnings.