Sentiment among management fell in the second quarter, UBS Group AG found after studying conference calls. And negative language is likely to pick up during this reporting season given the uncertainty around trade talks between the U.S. and China, said Keith Parker, the firm’s head of U.S. equity strategy.
Bolstered by tax cuts and a strengthening economy, more than 80 percent of S&P 500 companies delivered better-than-expected profits during last reporting season, a rate that’s never seen before. All together, earnings topped forecasts by 5.2 percent. The record pace of beating is unlikely to continue, according to Ed Keon, chief investment strategist at QMA.
“You’re going to go to a slower trajectory,” said Keon. “You’ll see the second quarter will turn out to be the peak in terms of growth rates.”
This article was provided by Bloomberg News.