Second quarter earnings season is behind us and we are a few
weeks away from the start of the third quarter earnings season.
Looking at the earnings results and earnings growth expectations
for major sectors, some sectors look better positioned than
||Earnings Growth (YoY)*
Zacks Earnings Trends
SPDR-SP 500 TR (SPY): ETF Research Reports
SPDR-EGY SELS (XLE): ETF Research Reports
SPDR-FINL SELS (XLF): ETF Research Reports
SPDR-INDU SELS (XLI): ETF Research Reports
SPDR-CONS DISCR (XLY): ETF Research Reports
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Cyclical sectors like Industrials, Energy and Materials have
picked up some momentum in the past month or so as the economy
shows clear signs of recovery.
Will industrials continue to benefit from the strong revival in
global manufacturing activity?
Finance sector has been the earnings growth leader this year
while Technology continues to be drag on earnings growth.
Can financials, banks in particular, continue to benefit from the
rising rates/steepening yield curve environment?
Consumer discretionary stocks were hot earlier this year but
recent spending data has been rather weak. On the other
hand, high-end spending continues to be resilient.
Materials sector remained out of favor with investors earlier
this year but has displayed strong performance in recent weeks on
the back of improved growth outlook in China--the world's largest
consumer of commodities.
Which sector do you expect to outperform in the fourth