US profits: will they bounce back as quickly as investors think?

bounce back

US earnings season is always a spectacle and this time around is no different. Well, no different but for one exceptional factor: Covid-19, and its effects on company profits. The businesses that make up the S&P 500 Index have started to tell us how they performed from January to March, a period of unprecedented operating conditions.

While some effects of the pandemic are apparent in the reports we’ve seen so far, we must remember that the US was one of the slowest countries to enter lockdown. In many states, the order to stay at home came only in the final week of March. Still others didn’t lockdown until early April. As a result, first-quarter company results can’t show the full consequences of the economic shutdown. To see those, we must wait until the second-quarter earnings season.

View Full Article – published by Aberdeen Standard Investments on 12th May 2020