US stock market earnings season officially begins today

financialexpress.com:

Beginning on July 14, when JPMorgan Chase, Citigroup, and Wells Fargo announce their quarterly report, the earnings season officially begins. According to market experts, the big lenders results may disappoint and end up below expectations. This reporting season is expected to reflect a worsening of the sector’s outlook and damage bank stocks.

This week, in an effort to stabilize the financial system after it was rocked by the bankruptcy of numerous regional banks earlier this year, a senior US banking regulator has set stricter capital requirements for a wider range of lenders.

In the previous quarter, along with other banking behemoths Citigroup and Wells Fargo, JPMorgan Chase announced an increase in first-quarter profits. This was encouraging news for investors after the banking crisis that emerged in mid March, resulting into instability in the banking sector and stoking concerns about contagion. At that time, JPMorgan warned again of a potential economic downturn while adding $1.1 billion in reserves in case of bad loans.

According to BlackRock – As Q2 results begin, corporate earnings need to deliver on market expectations to support stocks, in our view. We see a key divergence in earnings forecasts: They have risen for a few tech firms, while the rest stagnate. Profit margins are shrinking, and we see more pressure ahead. So we get granular and favor sectors like healthcare within developed market stocks.

The S&P 500 is about to experience more suffering as profit warnings and concerns about rising interest rates threaten the important US stock gauge. Particular attention will be paid to tech equities, whose valuations have increased as a result of the Nasdaq 100’s nearly 40% increase in the first half of the