First quarter earnings season will kick off this week with 40 S&P 500 Index companies slated to report results, including several of the biggest banks on Tuesday and Wednesday. Analysts are calling for a roughly 10% year-over-year decline in earnings for the index, as shown in the LPL Chart of the Day, down from the 4% year-over-year increase expected as of January 1. Even the lowered forecast may prove optimistic given some analysts have not adjusted numbers since mid-March in response to the lockdowns in many major cities throughout the country.

The focus for investors this quarter will be on finding

The economy has halted for the past several weeks, and with it the longest economic expansion ever has ended, meaning we are now in a recession. What makes this recession unique is the government intentionally brought it on, with the chances for an economic bounce back later this year high if the virus is contained. If this recession becomes one of the shortest on record, as we expect, stocks may enjoy better times ahead, as stocks historically have led the economy out of recessions. 

Longest Expansion Ends

After more than 10 years of a record expansion, the US economy likely entered recession at the end of March. The w

Stocks rallied strongly over the holiday-shortened week. Sentiment was boosted earlier in the week following data that showed New York, the hardest-hit part of the country, may be reaching a peak in COVID-19 cases. More Federal Reserve (Fed) stimulus helped later in the week. The political clarity now that Joe Biden is the presumptive Democratic presidential nominee may have also helped buoy sentiment.

The S&P 500 Index gained more than 10% for the second week out of the past three and now stands more than 20% off its March 23 low. The Dow Jones Industrial Average and Russell 2000 were best performers among major US indexes w

The economic damage inflicted by the current COVID-19 pandemic has been unprecedented, with thousands of businesses temporarily shuttered and millions of workers out of work. While the historic drop in economic activity is real and will be reflected in the second quarter gross domestic product (GDP) numbers, some nuances in the way GDP is reported may be exaggerating the extent of the damage.

According to data from Bloomberg, the average forecast gathered in April for Q2 quarter-over-quarter GDP growth in the US is -26.3%. So does this mean economic activity will be 26% less this year? The short answer is no. Because these number