Earnings Season Could Be the Boost the S&P 500 Needs. Here's Why Some Investors Are 'Fretting'

Earnings Season is emerging as the boost the S&P 500 needs, as upcoming second-quarter results from banks kick off tomorrow and could extend the market’s late-March climb. After the index traded sideways earlier in the year, it has been near the 7,500 level since around May, delivering roughly 10% year-to-date gains. Yardeni Research’s Ed Yardeni and Toby Hearst argue earnings should keep driving stocks higher, with Wall Street expecting strong growth again. However, Yardeni warns expectations may be so high that if results aren’t exceeded, the market could wobble in July as it did in June. FactSet data show consensus second-quarter earnings growth near 24%, implying two straight 20%-plus growth quarters if met.