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