Earnings Season: Earnings and Credit Quality

earnings season: But what had been steady and significant earnings growth has slowed or even reversed, according to Market Watch. Large U.S. banks, buttressed by strong credit quality, plenty of excess capital and a more friendly regulatory environment, are expected to buck this trend when they begin reporting July 16. As second-quarter earnings season begins, recent economic news has been good and the Dow Jones Industrial Average DJIA, 0.90% and S&P 500 index SPX, 0.46% are near recent records. Here are expected changes in earnings per share for the 11 sectors of the S&P 500, based on weighted aggregate consensus earnings estimates among analysts polled by S&P Global Market Intelligence S&P 500 sector Expected change in Q2 EPS from year- earlier Staples-0.7%Consumer Services-42.5%S&P 500 index-1.7%Source S&P Global Market Intelligence A complicated setup There are many moving parts to the earnings outlooks. Trade tensions with China have had an obvious effect on the technology sector. Years of stock buybacks have boosted EPS by reducing share counts but some companies now may wish to curtail buybacks given high share prices. (news.financializer.com). As reported in the news.