Bleak Q1 results outlook may mask market upside

ANALYSIS: Corporate Canada looks set to post lackluster first-quarter results, but lowered expectations and a sharp selloff earlier this week may set the stage for near-term share price gains.

Earnings beats and any optimistic outlooks are now more likely to provide a boost when some of the biggest companies start reporting next week.

"It's the magic of low expectations," said CIBC World Markets senior economist Peter Buchanan. "Commodity markets aren't that great, and developments in the domestic economy haven't been wonderful, but the bar (for earnings) is not set very high."