These are the stocks posting the largest moves before the bell.Market Insiderread more
An oil processing facility at Abqaiq and the nearby Khurais oil field was attacked on Saturday.Marketsread more
"There is reason to believe that we know the culprit," Trump said in a post on Twitter.Politicsread more
An extended Saudi oil outage could push Brent crude prices north of $75 per barrel, Goldman Sachs warned clients.Marketsread more
As investors worry about oil supply, airline and cruise ship stocks are getting hit on Monday, while some energy stocks are shooting upward.Marketsread more
The trucking industry is worth hundreds of billions of dollars per year. Uber is going after this market with Uber Freight, an online platform that matches truckers with...Technologyread more
Brent crude surged by as much as 19.5% to reach $71.95 per barrel on Monday, the biggest intra-day jump since the Gulf War in 1991.Oilread more
U.S. stock futures are under pressure Monday as oil prices spike after Saturday's coordinated strikes on key Saudi oil interests.Marketsread more
In the past few weeks, the S&P 500 has waged a 6% rally, pulling within 1% of its late-July record high by Friday's close.Trading Nationread more
The strike, depending on its length, could easily cost GM hundreds of millions of dollars. The last time the union declared a strike at GM was in 2007.Autosread more
Saudi Aramco has 35-40 days of supply to meet contractual obligations, a source close to the matter told CNBC.Energyread more
Betting against the stock market because of a weak outlook for corporate earnings might not be the best strategy.
The downbeat climate for profits has been one of the bear case pillars, along with the shaky global growth outlook, the continuing trade tensions between the U.S. and China, and some lingering worries that the Federal Reserve might make a policy mistake.
For the first-quarter earnings period, 59 companies thus far have issued negative guidance against just 19 that have been positive, according to FactSet.
But J.P. Morgan strategists contend that a negative earnings outlook does not necessarily translate to stock market losses — with recent history suggesting that equities actually have performed quite well as companies and analysts are trying to tamp down expectations for the future.
"Many believe that one can't buy stocks before earnings stop deteriorating. We continue to disagree with that view," Mislav Matejka, head of global and European equity strategy at J.P. Morgan, said in a research note.
Matejka and his team, which was named the best in their category four years running by Institutional Investor earlier this decade, point to the last earnings recession in 2015-16 as a template for why the bull market can continue after a rough 2018. The firm favors cyclical stocks such as energy and miners over defensives, based on market behavior during previous similar cycles.
During that run, the stock market bottomed in February 2016 even though the negative trend in earnings revisions continued all the way until December. The market rose 20 percent before the earnings outlook began to turn.
J.P. Morgan expects the earnings backdrop to turn positive as soon as the second half of this year.
"If this comes to pass, it should drive the next leg of the current market rebound, as it will be seen as a fundamental confirmation of the upmove that many investors are still holding out for," Matejka wrote. In that case, some of the market's biggest headwinds could become tail winds.
"We looked for supports from a dovish change in the Fed's reaction function, peaking dollar, improvement in the Chinese growth backdrop and positive developments from the US – China trade negotiations," he said.
In fact, the bull market has been characterized by poor expectations for earnings.
Revisions have been in negative territory 64 percent of the time during the period, with stocks positive 60 percent of the time, according to J.P. Morgan. In all, the is up more than 315 percent since March 2009, despite battling against persistently negative views from investors, corporations and analysts.
The J.P. Morgan team is advising clients not to wait until the earnings backdrop changes before adding to equities. On average over the past four negative earnings cycles, stocks started rallying seven months ahead of a reversal, with the average gain 30 percent.
In the fourth-quarter reporting period, companies that have missed earnings estimates have faced a significantly lower market penalty than in previous years.
Companies that missed saw a share price drop of just 0.4 percent on average over the next two days, compared with the typical 2.6 percent decline, according to FactSet, which points out that the penalty for misses is the lowest since the second quarter of 2009, when the market bottomed.
J.P. Morgan points out that multiple companies, in fact, saw major gains the day after a miss.
General Electric had an 11.6 percent gain, Ingenico Group rose 10.5 percent and STMicroelectronics jumped 10.2 percent.