Wall Street cheers for the peaking earning season
Another round of earnings season is coming this week. US conglomerates are expected to reveal the strongest ever rebound in revenue second-quarter earnings season, supported by the scale of the recovery in corporate America’s fortunes since the depths of 2020.
![Source: Bloomberg](https://ussnsimg.moomoo.com/4609856822947946471.jpg/bigmoo)
While earnings are expected to reach a peak in the second quarter, the above chart also illustrates how sharp they fell a year ago, when households and much of the economy were bruised badly by the global public health crisis.
More broadly, companies in the $S&P 500 Index(.SPX.US$are expected to see a 63.6% increase in earnings in the second quarter from a year before, which would mark its highest 12-month climb since the fourth quarter of 2009, according to FactSet analysts.
More broadly, companies in the $S&P 500 Index(.SPX.US$are expected to see a 63.6% increase in earnings in the second quarter from a year before, which would mark its highest 12-month climb since the fourth quarter of 2009, according to FactSet analysts.
Week Ahead Calendar
![Source: moomoo](https://ussnsimg.moomoo.com/6760647518814470158.jpg/bigmoo)
What’re the analysts’ opinions on this earning season?
What happens next week will color the entirety of earnings season. If we get some good ones, we'll be in party mode, but a negative series of numbers from the banks and some upsetting Covid stats could make for a tough earnings season.
-CNBC's Jim Crameron Friday looked ahead to the start of earnings season
Market participants are keenly aware that level of growth can occur only for a very short period of time. We do not think the markets are worried about economic or earnings growth slowing from these very robust levels, at least at this point
-Wells Fargo senior global market strategist Scott Wren wrote in a note
We believe EPS will grow 75% led by robust earnings for Financials and Cyclicals. Stocks have rallied with surging EPS expectations while multiples have been largely unchanged.
-Credit Suisse chief U.S. equity strategist Jonathan Golub on Bank industry
We’re a little more defensive. We would like to see the optimistic outcomes, but we think the risk profile in the world is rising.
-said David Kotok, chief investment officer at Cumberland.
I come back to inflation and margins being something that could really create a pause with stocks. Certainly if there’s wage inflation that starts to take hold, I think that is going to get people’s attention.
-said Larry Cordisco, co-lead portfolio manager of the Osterweis Growth & Income Fund
Since it is likely to be a record-setter for growth, it is critical that investors not lose sight of these significant fundamental developments.
-Joseph Amato, chief investment officer for equities at Neuberger Berman, wrote this week about the coming corporate reporting season
Valuations on their own don’t kill a market, but valuations make you vulnerable if there’s an unpleasant surprise. Should the momentum in earnings continue - and we think it will - we believe the market can remain resilient as policymakers adjust their thinking.
-said Tom Hancock, lead portfolio manager of the GMO Quality Fund
I think we’re at the peak for absolute levels of growth. I’m not saying it’s going to turn negative, but the idea that earnings are going to remain as big a support as they have over the past six months to a year (is dubious).
-Rupert Thompson, chief investment officer at Kingswood Group, sounded a note of caution.
Source: CNBC, Bloomberg, Dow Jones, Financial Times
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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JK Tan : Good
AL52 : looking forward!
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DragMonDaddy :![pray 🙏](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f64f.png)
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Lillian Lai : nice
ah chye : nice
101825609 : up up up!!!!!
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