2Q Earnings Starting With a (Bad) Bang
- By John Tierney
- 2 min read
Summary
- More companies are running into headwinds even if 2Q earnings were a beat in most cases.
- Weak investment banking results at two big banks shows that the collective C-suite of Corporate America must be doing some serious soul-seeking about how to position for the second half. Dealmaking and raising debt to finance growth is not at the top of many agendas.
- The consumer may be determined to have a good summer but may retrench big time this fall.
Market Implications
- Companies that report any bad news or even mention signs of weakness are getting hit hard.
- Unlike 1Q earnings season, there will likely be fewer good days ahead where positive earnings surprises spark rallies.
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.