While stocks were driven by a Fed rate cut expectation in July, earnings also became a focal point as economic weakness abroad and a strong dollar have created a challenge for earnings of U.S. multinational firms.
U.S. corporate earnings have proven to be more resilient than expected as earnings beat expectations for a swath of companies in the equity indices. The ability for companies to continue earnings increases in a slow growth environment is optimistic for the equity markets.
Sectors leading the equity markets in July included Information Technology, Communication Services, and Financials. Driven by better than expected earnings and revenue growth, the sectors were also influenced by the low rate environment and continuing consumer demand.
Sources: S&P, Federal Reserve
Disclaimer: The information published herein is provided for informational purposes only, and does not constitute an offer, solicitation or recommendation to sell or an offer to buy securities, investment products or investment advisory services. All information, views, opinions and estimates are subject to change or correction without notice. Nothing contained herein constitutes financial, legal, tax, or other advice. The appropriateness of an investment or strategy will depend on an investor’s circumstances and objectives. Please consult your Advisor about what is best for you.