The Dow Jones Index has jumped by nearly 10% this year and is now hovering near its all-time high. It has jumped by 19% in the last 12 months and 190% in the last decade. This index will have some volatility next week as traders react to corporate earnings, US consumer inflation, and any new developments on the US-Iran war.
Dow Jones to React to US Earnings Season
The Dow Jones and other top indices like the S&P 500 and Nasdaq 100 will react to the start of the earnings season, which will officially start on Tuesday. Five banks, including JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC) will publish their earnings on that day.
Morgan Stanley, Bank of New York, and PNC will report their earnings the following day. Analysts expect these banks to deliver strong results, supported by relatively high interest rates and robust activity in the trading and investment banking businesses.
A FactSet (NYSE:FDS) report shows that Wall Street analysts predict that companies in the S&P 500 Index will have an earnings growth of 23.6%. If this happens, it will mark the second consecutive quarter of earnings growth of 20%. In most cases, the real growth rate is usually much higher than what analysts expect.
