Analysts Pessimistic About Q1 Earnings - where investors should look now

Wall Street analysts are not hopeful about Q1 earnings season,which began,in accordance with tradition,with Alcoa's report after the closing bell.It is supposed to be the worst earnings season since the financial crisis.They foresee a 10% drop in Q1 profit.Despair is unwarranted,however..By Q3,the Street expects a rebound into earnings growth;and,by Q4,it predicts a return to profit growth.*
Scott Wren,Senior Equity Strategist and Managing Director at Wells Fargo Advisors,recommends leaning into those cyclical sectors that have fared best since the February low:consumer discretionary;industrials;and technology.*
Alcoa reported earnings per share of 0.07 per share versus the estimate of 0.02,a significant beat.This success was tempered,though,by their revenue of 4.95 billion versus an estimate of 5.2 billion,a slight miss.The ambiguity may be ascribed to the steep decline in aluminium prices.*
Also reporting this week will be money center banks JP Morgan Chase,Citigroup and Bank of America/Merrill Lynch.*
Alcoa (AA),iShares Global Consumer Discretionary ETF (RXI)