Amid concerns about a possible global recession due to tariffs, Wall Street is preparing for companies to adjust their guidance or even withdraw it altogether during earnings season. Delta Airlines, the first company to report its first-quarter results, did not confirm its full-year forecast, attributing this to uncertainties stemming from the trade war.

Piper Sandler's Chief Investment Officer, Michael Kantrowitz, mentioned that many companies may follow suit and retract their guidance during this earnings season due to the unpredictable policies affecting the market. Investors are approaching this season with cautious optimism, eager to see the impact of escalating tariffs on corporate earnings.

Delta's CEO, Ed Bastian, acknowledged that the trade uncertainties are unprecedented and make it challenging to estimate future performance accurately. Similarly, Walmart maintained its full-year profit outlook but mentioned a wider range for potential operating profit growth outcomes in the first quarter due to tariffs.

As the earnings season unfolds, market experts will observe not only the statements made by companies but also how the stock market reacts, particularly in sectors heavily affected by recent challenges such as retail.