Svmuu News: Morgan Stanley strategists say that, aside from tech giants, other U.S. stocks are also expected to report strong earnings during this earnings season, which could help the stock market rally spread further. The team led by Michael Wilson noted that the median earnings per share growth rate for companies in the S&P 1500 Composite Index currently exceeds 10%, marking the best performance since the post-pandemic recovery began.
In addition, analysts continue to raise earnings forecasts for the consumer discretionary and transportation sectors, both of which are closely tied to economic growth. “We expect the market rally to continue broadening, driven by the earnings resilience of median-sized stocks.” The second-quarter earnings season kicks off on Tuesday, with major banks set to report first. According to compiled data, analysts expect earnings for S&P 500 companies to grow by 23%, which would mark one of the strongest periods in history, second only to recoveries following major economic recessions. (Jin Shi)