“Positive Q3 and Q4 earnings in US will likely translate in new highs for the US stock markets later in 2016,” says John Eade, President, Argus Research, as he offers an outlook on the US Economy and Stock Markets, joined by Zak Mir, Technical Analyst at Zak’s Traders Cafe.
Eade notes that the US elections ahead are adding the bit of uncertainty in US markets, but a possible pick up in NFP will bode well for the consumer sentiment and thus the US economy.
On the interest rate scenario, Eade believes that the Fed is unlikely to act any time soon, and that low rates are here to stay in the US for some time. Federal Reserve out of the equation is good for the financial markets, says Eade.
Besides the rates and the state of the US economy, Eade shares that the Q2 earnings season ahead is a key issue, and that “Earnings are going to decline but not as much as seen in Q1.”.
Eade expects the US energy sector to look better in Q2, and expects the earnings outlook for the stocks to be better ahead in the second half of the year.
For the expected top earners ahead in Q2, watch the entire video