Earnings season kicks into full swing

In this week’s video update:

  • Earnings season kicks into full swing, beating expectations so far in the U.S.
  • European Central Bank (ECB) decide to leave its main interest rates unchanged. What factors contributed to the decision?
  • How might political developments in Turkey affect the emerging markets outlook?

On this week’s market update, Investment Strategist Paul Eitelman discusses a week of mixed earnings and upbeat economic data in the U.S., following a week of record highs from the S&P 500®. While earnings in the U.S. are coming in above expectations a quarter of the way into the release of the reports, Eitelman still expects Q2 2016 earnings to overall to stay close to around - 4-5%, and notes the main focus is the earnings picture as we enter the third and fourth quarters in 2016 and beyond.

Eitelman then comments on the ECB’s decision to leave its main interest rates unchanged this week amid stress in the banking system and geopolitical stability, and believes the outlook still looks positive in favoring European equities in a globally diversified portfolio.

Lastly, Eitelman discusses recent political developments in Turkey and its impact on the emerging markets outlook following the failed coup attempt last Friday. As Turkey only represents a small percentage of the MSCI Emerging Markets Index, Eitelman does not see major implications, particularly given macroeconomic data continues to improve in the emerging markets. Communications Manager Alexandra Davis hosts.