Wall St >>> Biased or Unbiased Views For 2010 x Q1 Quarterly Earnings?

Big profits, big expectations ahead >>> if you compare 2010 to 2009 Q-on-Q

A strong first-quarter reporting period is underway, igniting what could be a big year for corporate profit growth.

Cost-cutting, productivity gains and the easy comparisons to a year ago will all help lift first-quarter results, Looking further ahead, second-, third- and fourth-quarter earnings are also primed for growth. All said and done, the Dow is nonchantly expected to outperform market expectations.

The 2009 first quarter encompassed the height of the credit crisis. Earnings plunged more than 40%, stocks sank to their lowest levels in more than a decade and worries about a global financial meltdown abounded.

Compare Q1 2010 to that and you expect a flip flop U-turn for this rising trend? You must be seriously joking ..........

Most economists think the recession is now behind us, despite lingering high rates of unemployment and a still hard-hit housing market. First-quarter earnings for the S&P 500 are forecast to jump nearly 37%, when compared with last year's abysmal first quarter, according to market researchers.

The remainder of the year is expected to continue that trend with double-digit profit growth and single-digit growth for sales. Revenue figures in the first quarter will also get a boost from a weaker U.S. dollar since roughly 50% of the revenues of companies in the S&P 500 come from overseas operations noted another analyst.

Although the dollar has managed to carve out some gains recently, the longer-term trend still points to a weaker greenback. That bodes well for energy, tech, consumer staple and industrial firms because those have the most international exposure.

After the close Monday, Alcoa reported a profit versus a year-ago loss, meeting expectations, on higher revenue that missed estimates. Intel reports on Tuesday. JPMorgan Chase, Bank of America, Google and others are due later in the week.

Big banks poised for profit renaissance
Other sectors will fare better. For example, tech earnings are expected to have surged 49% from a year ago with revenue gaining 16%. Consumer discretionary is also primed for a good quarter, due to strength from a number of retailers, which could be seen as yet another indication that consumers are feeling better.

Automakers are helping drive that sector's growth. In particular, Ford Motor is expected to bounce back notably from a year ago. The automaker is expected to have earned 30 cents per share after posting a loss of 75 cents a share in the first quarter of 2009.

Looking forward
The big five leaders of the first-quarter results are expected to maintain dominance through the year. Financials are expected to post small gains in the second quarter, with bigger gains coming in the third and fourth quarters. Materials, consumer discretionary, technology and energy follow a similar trajectory throughout the rest of the year, according to market researchers.
These sectors are economic leaders, but also tend to depend on reasonably strong economic growth to see strong profit growth.

There's a question of whether analysts are being too confident. It's going to be key to watch the guidance from the companies and whether the analysts' growth rates start to come down. That's always important, but especially this quarter.

No report from Wall St today. You think it is still necessary other than the exact numbers that had been BT-predicted (Alcoa included) over the past 48 hours?

Have a nice day & happy trading