Brace yourself for some big surprises this earnings season. Early first-quarter earnings are signaling an "awful" reporting period that is expected to send U.S. stocks lower in the weeks ahead, Goldman Sachs said in a research note on Monday.
"Although only a few firms have reported (first-quarter) results, early signs are awful," said the note, which was released by Goldman U.S. investment strategist David Kostin.
"We expect generally disappointing results and a swath of lowered profit guidance that will drive the S&P 500 lower in coming weeks."
What's more, Kostin's note said, first-quarter estimates remain overly optimistic, and negative earnings surprises are likely in the coming weeks.
How should you trade when you’re being warned to expect the unexpected?