After a treacherous, highly volatile, overall negative weeks for stocks, earnings have had a muted impact on the market's moves. Yet with a massive slate of reports ahead, including results from behemoths like Apple, IBM, Coca-Cola and McDonald's on Monday and Tuesday alone, corporate results and guidance could finally dictate trading.
Amid the market turmoil, "there's been a de minimis focus on earnings. It's affected single stocks, but it hasn't had the typical spin-over effects into other companies and sectors," CovergEx Group chief market strategist Nicholas Colas said. "It certainly hasn't been the usual earnings season so far."
Thus far, results have looked reasonably good. Of the first 82 S&P 500 companies to report results, 68 percent have beaten earnings estimates and 63 have beaten revenue estimates, FactSet.
While that is below the recent historical average percentage of beats on the earnings side, that is above what investors have come to expect on the revenue side, FactSet senior earnings analyst John Butters reports.
Ultimately, it will likely be revenues that shed light on the state of the global economy—which is particularly important role now that global jitters have shaken risky assets.
"We started the quarter probably a little more focused on revenues than we were on earnings, and now we are even more focused on revenues," said John Traynor, chief investment officer of People's United Wealth Management, which manages $5.5 billion in assets.