Third quarter US earnings season
With the global market
taking hold off the back of selling in the US, the ongoing corporate earnings season for the third quarter could land with a material impact.
the S&P 500 is expected to post earnings growth of 19.2% on revenue gains of 7.3%, according to data provider FactSet. This follows on from 25% jump in earnings on a 10.1% revenue increase for the second quarter. Earnings from the banking
sector have already been published and have revealed the benefits from deep tax cuts and rising interest rates (a sectorspecific catalyst). If most other
vein, then investor concerns
start to dissipate.
However, if earnings disappoint then the selling could resume with greater intensity. The dominant technology sector may hold the key to investor
scheduled to report.