Earnings season to test breadth of stock market rally

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First quarter earnings season is about to put the breadth of the stock market rally to the test. Consensus expectations are for a 3.2% year-over-year earnings increase for S&P 500 companies in the first quarter. The top 10 stocks in the S&P 500 are expected to see earnings grow by 32% in the first quarter, while the other 490 stocks are projected to produce an earnings decline of 4%. The overall earnings picture for the benchmark index is levered to the index's largest corporations. Bullish investors are looking for a 'catch-up' scenario in markets where the earnings for the other 490 companies in the S&P 500 start to rebound later in the year. A growing US economy is expected to be a tailwind for stocks outside the tech sector. If this is met by upbeat guidance from other areas of the market, it would 'continue to encourage' the rotation seen in markets over the past month with sectors like Energy and Industrials outpacing gains in Technology and Communications Services.

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https://finance.yahoo.com/news/earnings-season-to-test-breadth-of-stock-market-rally-153242480.html