Earnings season has come and gone, and despite fears of an “earnings doomsday,” it seems that the market has held up better than expected.
According to Paul Hickey, co-founder of the Bespoke Investment Group, the mega-cap companies, including Apple, have held up well during earnings season, with over 70% of companies beating forecasts.
While Apple’s high valuation has been a concern, its growth and sticky products make it comparable to other consumer staples.
Hickey does not expect much upside or downside for Apple in the near future.
In addition to earnings season, the market is also contending with the Fed rate hike and tomorrow’s jobs numbers.
Hickey warns that if the Fed continues with its hawkish tone, the market could have big problems.
However, the positive earnings reports and guidance from companies have been a bright spot in an uncertain market.
Despite the turmoil in the banking sector, more companies are raising guidance than lowering it, suggesting that the market may continue to hold up.