Q2 2017 earnings season will probably be strong. bullish for stocks in mid-late July 2017

a strong earnings season in July will probably be bullish for stocks

1. the earnings growth rate in q2 2017 will be slightly lower than in q1 2017. this is mostly because energy companies are experiencing a lower earnings growth rate (oil has been falling).

2. the finance sector is still experiencing strong earnings growth because interest rates are up year-over-year

3. analysts expect the tech sector to release strong earnings (e.g. Google, Amazon, Intel).

analysts tend to underestimate earnings. for example, they estimated q1 2017 to be 9% when it came in at 13%!

Hence, it's likely that earnings in Q2 will beat expectations. the stock market goes up more often than it goes down when earnings reports are "strong".

Submitted June 20, 2017 at 02:46AM by markethistory http://ift.tt/2tn8BRb