Investors to tune in for trade impact this profit season

NEW YORK (Reuters) – With the United States and China finally formalising tit-for-tat import tariffs, Wall Street is gearing up to dissect US corporate earnings in the coming weeks affect spending plans.

Investors worry the trade with China, the United States largest trading partner, could make companies delay plans for capital expenditures, which jumped into the first quarter of the year.

The United States and China slapped duties on $ 34 billion worth of each others' imports on Friday, escalating their dispute and prompting the future.

Machinery, aerospace and other industrial names have been among the hardest hit. S & P 500 industrials .SPLRCI have fallen more than 5 percent since March 1, when U.S. President Donald Trump said he would impose steep tariffs on steel and aluminum, while the S & P 500 .SPX has risen more than 1 percent in that period.

Following 2018, said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

"What we're hearing from a number of CFOs is if the trade issue continues to dominate the headlines and create even more uncertainty, those plans may be on hold," she said.

In the first quarter, year-over-year S & P 500 capital expenditure growth was the highest since 2011, according to S & P Dow Jones data.

Strategists at DataTrek Research in New York.

"The major concern is the supply chain. So, it is a balancing act, "said Tim Ghriskey, chief investment strategist at the Inverness Counsel, in New York. New York. "For every company hurt, there's a company that's being helped. So, it is not negative for anyone by any means. "

Wells Fargo ( JPM.N JPM. ] WFC.N ) and Citigroup ( CN ). More than 200 S & P 500 reports are following the following two weeks, some of which are believed to be in the middle of a U.S. trade war with China.

They are expected to include results from Honeywell ( HON.N ), Boeing ( BA.N ), Whirlpool ( WHR.N ) and Western Digital ( WDC.O ), while results from Caterpillar ( CAT.N ) are due July 30.

Profit forecasts quarter earnings growth, which analysts say it could be more than 26.6 percent year-over-year increase. That was the biggest quarter of 2010, according to Thomson Reuters data.

"That dominates the landscape at the moment. The impact is not going to be on earnings already made; it said, "said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

UBS analysts said that these consumer discretionary shares were among the best performers of this year.

Harley Davidson ( HOG.N ) A close look at the time of day when the war broke out. corporate profits might otherwise help the bull market by its 10th year.

Some investors say a lot about the bad news.

"said Bucky Hellwig, senior vice president at BB & T Wealth Management in Birmingham, Alabama.

Savings from the U.S. tax overhaul are continuing to boost corporate bottom lines, he said.

The price impact has yet to show up in earnings forecasts, even though trade tensions have been a worrying heading into first-quarter results as well.

Estimates for S & P 500 second-quarter profit growth actually has risen slightly, based on Thomson Reuters data. Given that the majority of companies typically analyze earnings expectations, that number is likely to rise.

A U.S. Dollar U.S. Enhancing Objectives, Which Strategies Could be More of a Problem in the Second Half of the Year If it Continues on the Same Path.

Higher commodity and labor costs are on the list of profits as well.