The energy sector is reporting the highest year-over-year earnings growth of all 11 sectors, at a whopping 265.3%. The blended revenue growth rate is 10.9%. Notably, the operating results of S&P 500 companies have been surprising on the upside.įor the second quarter of 2022, with 21% of S&P 500 companies reporting actual results, 68% have reported a positive earnings surprise and 65% have reported a positive revenue surprise.įor Q2 2022, the blended earnings growth rate for the S&P 500 is 4.8%. There’s still enough fuel to propel stocks higher this year. If the index breaches this threshold, recent bullishness could gain momentum. The bond market seems to be anticipating a negative GDP number, which is why the 10-year note dipped below 3% last week.įor the S&P 500, there’s been price resistance at the 4,000 level. Sometimes on Wall Street, bad news is interpreted as good news. Stocks might pop higher, because it would mean the Fed is more likely to get dovish. How the stock market responds is hard to predict. If that happens and a recession is declared, expect the media (especially partisan outlets) to go berserk. That would constitute the second quarter in a row of a contracting economy, the official definition of a recession. Bureau of Economic Analysis releases its second-quarter gross domestic product (GDP) report on Thursday, July 28, amid growing expectations of a negative number. The current rally has occurred in tandem with a significant decline in longer-term interest rates, with the 10-year Treasury yield slipping from 3.5% to 2.75% (as of market close, Friday, July 22). Overseas stocks bounced back as well, despite increased monetary tightening by central bankers in Europe. Stocks ended last week in positive territory, as investors put aside recession fears to focus on solid earnings results. The coronavirus pandemic stubbornly flares up, just when we think it’s behind us, and supply chains, although improving, remain out of whack.Īnd yet, at the very least, it appears that the bear already has reached bottom and an appetite for risk-on assets is returning. We probably face further selloffs ahead, as stocks gyrate depending on Federal Reserve announcements, economic data, news of the war in Eastern Europe, and inflation readings. The S&P 500 turned in its worst half-year start since 1970. After two years of remarkable stock market gains, the year 2022 so far has been a rough one for investors. Investor gloom is lifting and we’re seeing signs that the stock market has stabilized.īut make no mistake: If no new all-time high is set, we remain in a bear market. stocks have rallied strongly off their June lows.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |