Second quarter earnings are beginning to cross this week and investors are waiting for signs from corporate America that a recovery could be in the making. Shares and broad market exchange traded funds will be watched closely.
“Currently, only three sectors are expecting to report Q2 EPS growth: Industrials, Information Technology and Consumer Staples. In addition, 25 companies have reported results for Q2 thus far, with 15 beating estimates, 5 missing and five matching,” S&P’s Sam Stovall wrote in a recent note.
Analysts are getting ready for the worst-case scenario. Wall Street analysts are expecting S&P 500 operating EPS to drop by 0.1%, snapping back any gains or growth that has taken place.
The S&P 500 has gained about 7.7% for the year, while the Dow Jones Industrial Average has grown 4.5%. Furthermore, the Nasdaq rallied 12.7% for the year, reports Jill Schlesinger for CBS MoneyWatch. [Bond ETFs Remain Top Draw in June]