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Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

global-equity-strategy-q-earnings-preview-establishing-the-low

Perspectives

Global Equity Strategy | Q2 Earnings Preview: Establishing the Low

Author

By Joe Fiorica, Investment Strategist

July 9, 2020Posted InEquities

  • Before logging off in droves and commencing their hard-earned staycations, investors in the US will be looking to Q2 earnings season which unofficially begins with many of the big banks on Tuesday, July 14th. Headline numbers are likely to be dismal, with profits expected to have fallen nearly 45% in Q2. We would not be surprised if the actual Q2 profits decline is even larger in magnitude, driven by a few outsized losses.
  • Outright losses are likely in sectors like energy and consumer discretionary (Amazon’s earnings contribution to the sector is much smaller than its market cap share), while industrials firms are expected to post earnings at around 11% of 2019 levels – an 89% YoY decline.
  • High-frequency economic indicators over the past few months suggest that the worst lockdown effects were likely felt in March and April, with reopenings gradually building in May and June. We expect Q2 will mark the low for economic activity and profits, establishing a base that will likely drive sharp rebounds in percentage terms in the first half of 2021.
  • COVID-Defensives like IT are likely to demonstrate their immunity to the shutdown.
  • Federal Reserve liquidity should help offset the effects of tightening bank lending standards.
  • Sufficiently positive surprises among the most beaten down sectors could lead to short-covering rallies as investors would be forced to reprice less dire earnings expectations.

Read the latest issue of Global Equity Strategy