Some reporting seasons are more exciting than others. That could be the case again this time around.
Second-quarter earnings are likely to be muted, which is nothing new, as the impact of lower taxes will have evaporated. More important will be the forward guidance companies give for the upcoming quarters. Manufacturing-related companies, which are being hit by global trade tensions, will be closely watched. But it’ll also be interesting to see the guidance of other sectors like technology and banks.
Any weakness here is likely to be reflected by lower equity prices as markets have been pricing in better earnings growth for the second half of this year.
