CEOs have just enjoyed their strongest quarterly earnings season in five years, as the economy continues on its long and winding recovery from the financial crisis.
Storm clouds, however, could be on the horizon, as policy uncertainty in Washington keeps investment at bay and traders warn of a possible market correction.
Companies in the S&P 500 index boosted first-quarter profits by an average of around 14% compared to the same period a year earlier, according to separate analysis by Zacks Research and FactSet. The estimates came after around 98% of the index’s total membership had tabled figures.
There were many pleasant surprises, with more than 70% of CEOs handing down better-than-expected earnings. Outlook statements, however, were a little less rosy: FactSet said 73 companies issued distinctly negative guidance for the second quarter, while 36 issued distinctly positive guidance.
“I’d say the second quarter is going to be disappointing in terms of earnings and growth.”
The head of the world’s biggest fund manager is among the more vocal market bears doing the rounds.
At a conference in New York yesterday, BlackRock CEO Larry Fink warned of a more subdued second-quarter earnings season, while predicting that European economic growth will outpace the U.S.
“I’d say the second quarter is going to be disappointing in terms of earnings and growth,” Fink said. “It’d tell me markets are probably fully priced at this moment.”
Growth expectations are being hampered by ongoing intrigue around the Trump administration’s relations with Russia—a sideshow that is threatening to distract the president from his pro-growth agenda and make it more difficult to muster support for tax reform in Congress.
Most recent CEO surveys, however, indicate the majority of managers remain relatively upbeat because the administration at least has ideas that they support.
“Depending on the success of the Trump agenda, [it] will probably determine the course of the equity market for the remainder of the year,” Fink said.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
