The official outlook for the next round of corporate earnings is pretty grim .
The Standard & Poor’s Capital IQ survey, forecasts that earnings will have grown 0.93 percent in the first quarter, the slowest rate in three years.
But low expectations will make for positive surprises this time, says Stanley Crouch, CIO of Aegis Capital, largely because of one very influential company.
“The 8,000-pound gorilla in this mix is definitely Apple,” said Crouch. “Its weighting in the (S&P 500 index) is critically important, and its a sunny side of the street company. It’s hard to believe Apple will disappoint.”
Apple’s weighting in the S&P 500 index is 4.7 percent. To put this in perspective, if every company had an equal weight in the index, it would be about 0.2 percent.