Excerpt from the Wall Street Journal quoting DataTrek’s Nick Colas:
….”The Fed is also likely to overshadow second-quarter earnings reports, which will begin to flow in mid-July.
Analysts are forecasting aggregate earnings for the S&P 500 will come in slightly below last year’s second-quarter level, which provides room for a positive surprise, said Nicholas Colas, co-founder of DataTrek Research, in a recent research note. That, combined with an easier Fed, could propel stocks even higher.
“Unless we see a dramatic shift in earnings expectations—and that rarely happens outside of a geopolitical shock that causes a recession—the direction of interest rates will determine the direction of equity prices,” Mr. Colas wrote”….
Read the full article here in the WSJ!