Strong Earnings Results Can’t Save Stocks from Dimming Forecasts

Stocks are surging to new highs on the prospects of peace in the Middle East and what has so far been robust first quarter earnings results. But strategists say the key to further equity upside will be corporate outlooks.

Investors will be even more focused on guidance than normal and, “if there’s a crack in the story,” there’s a major risk to the market, said Walter Todd, chief investment officer at Greenwood Capital Associates.