Two from Bespoke Investment Group:
...Bespoke readers will remember how strong the market was during the first quarter earnings season as well. With a gain of 9.51% from April 7th through May 14th, the Q1 reporting period had been the best earnings season for the S&P 500 in 8 years heading into to this quarter. But once Wal-Mart reported on May 14th, the bulls strugled to find the next catalyst to propel shares higher. From the end of the Q1 earnings season to the start of the Q2 earnings season, the S&P 500 was down 1.51%.
Don't be surprised if we begin another period of sideways trading now that the most recent earnings season has come to an end. With the Dow down a quick 150 this morning, it looks like the hangover could be pretty rough.
...The S&P 500 as a whole is expected to see earnings decline by 21.8% in the third quarter. Consumer Discretionary is the only other sector expected to see year-over-year growth in the third quarter. Materials and Energy have the worst estimates at -69.2% and -66.7%, respectively.Go to Bespoke for the rest of their commentary.