Technology

Key Top-down Takeaways on Q2 Earnings

The second quarter earnings season is still underway. There have been some strong earnings surprises, especially by some industry bellwethers. But despite that, initial market reaction has been somewhat lackluster. Our Chief Equity Strategist and Economist, John Blank, is here to help us understand what’s going on.

1. John is this because these strong earnings with easy comps had been priced into the market for a while?

2. According to published reports, the second-quarter earnings season could establish a high-water mark for the rebound U.S. corporate profits have undergone since last year's coronavirus-induced pain. But, do you expect the nice beats we’ve seen now to come down later, say in Q4, as comps get a bit tougher?

3. Are strong earnings tempering the market’s concern over inflation and the resurgence of Covid infections as a result of the Delta variant?

4. Treasury bond yields have soared in recent weeks. Does this suggest that investors are moving cash into bonds because they see weakness going forward?

5. As the market climbs the wall of worry, is downside market risk increasing and if so, do you expect August and September to be troublesome months for the stock market?

6. The market seems to be shrugging off inflation concerns, hotter than expected inflation data and resurgence of Covid infections. So is the Bull and Buy The Dip story still in tact?

7. How should investors play the second half of the year then?

8. What’s the current story on the Global Markets? Are European earnings peaking?

9. Against this backdrop, let’s look at a few recent market leaders, namely Brookfield Asset Management BAM, homebuilder Lennar LEN and retailer Best Buy BBY.

Our Chief Equity Strategist and Economist, John Blank, bringing us up to date on the markets. With John, I’m Terry Ruffolo.


5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. 

Today, See These 5 Potential Home Runs >>

Click to get this free report

Best Buy Co., Inc. (BBY): Free Stock Analysis Report

Lennar Corporation (LEN): Free Stock Analysis Report

Brookfield Asset Management Inc (BAM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Technology Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More