Focus Turns to U.S. Earnings

With all the hoopla over the Dow topping 17,000 out of the way, the market’s next focus will be whether the fast-approaching earnings season can justify U.S. stocks climbing further into record territory.

Many factors point to second-quarter earnings poised to surprise substantially to the upside. There is a slight chance that profits for S&P 500 .SPX companies could return to double-digit growth for the first time in nearly three years.

After Thursday’s strong U.S. employment report, some economists have begun talking up prospects for a 4.0 percent annual growth rate in gross domestic product for the April-through-June period, a dramatic snap back from the first quarter’s contraction of 2.9 percent.

Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.