It's Not Just the Fed and Trump That Trouble the Stock Market
- Stock reactions to earnings are more pronounced than usual
- Corporate guidance suggests a profit rebound may be elusive
The New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
In a week when just a few words from Jerome Powell and Donald Trump were enough to send stocks reeling, it’s easy to conclude their pronouncements are all that matter to markets right now. But something else keeps showing it can sway prices: bad earnings.
While investors clearly were glued to every word from the central bank and president, the reporting season showed that fundamentals still matter, particularly in a market as richly valued as this one. Falling short of earnings forecasts has led to swift consequences.