How Bad Will the Economy Get? Companies Will Provide Clues
The coronavirus pandemic has pushed the economy into a slowdown of unknown severity. It could be a long, drawn-out recession, or a sharp dip followed by a swift recovery.
The stock market, which has soared 23 percent from its low, is signaling that many investors expect a quick rebound.
But that optimism will be tested over the coming weeks when large companies report their quarterly financial results for the first three months of the year and predict the pandemic’s effect on their business.
“Earnings season,” as it’s known on Wall Street, usually fascinates only professional investors. And corporate executives, always reluctant to discuss problems, may be even less forthcoming about them now. But with millions of jobs on the line and businesses shuttering every day, this deluge of company information, and …continued .
[Source: New York Times]