Expectations may be low this US earnings season
Main U.S. indexes red; Nasdaq off most, down ~0.8%
Energy weakest S&P 500 sector; Real Estate leads gainers
Dollar, gold rise; bitcoin up ~1.5%; crude slides ~5%
U.S. 10-Year Treasury yield edges down to ~4.05%
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EXPECTATIONS MAY BE LOW THIS U.S. EARNINGS SEASON
There seems to be a low bar for expectations as the latest U.S. quarterly earnings season begins, Lindsey Bell, chief investment strategist at 248 Ventures, writes in a note out on Tuesday.
She noted that consumer spending is solid and that the services sector remains strong, while inflation is moderating.
"Margin expansion is set to reach near pandemic-era highs," Bell writes. "Any upside in sales means earnings beats are coming."
The U.S. earnings season unofficially kicked off for S&P 500 .SPX companies late last week. Analysts expect year-over-year S&P 500 earnings to have increased 4.0% in the third quarter, according to the latest LSEG data.
The expected single-digit earnings growth "follows Q2's double digit earnings growth which was the first double digit growth quarter since Q4 2021," Bell writes.
Estimated revenue growth for the third quarter is at 4%, per LSEG.
(Caroline Valetkevitch)
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