Bottom Line
Our Corporate Beige Book may not inspire much confidence, but it may provide some assurance for those who fear earnings may get worse, not better. We continue to expect earnings to rebound in the second half of the year, despite another decline in the just-completed second quarter and little evidence that corporate executives are more confident. We expect better U.S. economic growth to help more as the year progresses, while currency and energy drags should continue to abate through year-end and the resilience of estimates is a positive sign. Look for more from us on earnings in about a month as we gear up for the start of third quarter earnings season in October.
Burt White is chief investment officer for LPL Financial.
Jeffrey Buchbinder, CFA, is a market strategist for LPL Financial.