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00:00 Josh
Well, markets have struggled a diplomatic tight rope this week, but let’s not forget also need to navigate earning season now in full swing. Inez Ferre now joins me for the investor playbook. Inez.
00:16 Inez Ferre
Yeah, Josh, and Wall Street is setting aside any geopolitical drama and they are focusing on earnings, which is what really drives the market higher. And uh you have the estimates for the S&P 500 that are expected the earnings growth to come in at 8.2% for the fourth quarter. But factset analysts are saying that that could be over 14% when all is said and done because over and over again, we’re hearing about the fundamentals. Richard Saperstein, chief investment officer at Treasury partners, spoke to Julie Hyman and talked about the fundamentals. Take a listen.
01:01 Richard Saperstein
When we look at the fundamentals, which is uh declining inflation, a robust economy. Um we’ve got excellent jobs, jobs that are moderating but growing, uh but we’ve got an excellent backdrop for earnings growth.
01:21 Inez Ferre
And BNY wealth also had a round table this week and I attended that and they talked about the fact that you are going to be seeing a broadening of the market and that you are going to see participation not just from the top 10 uh stocks, companies of the S&P 500, the Mag 7, but also from other sectors. and that’s part of what we’ve seen also with the stock market year to date when we’ve seen materials that are higher, industrials higher, energy higher. So you’re looking at that cyclical play and that is good because that means that it’s not just the concentration when it comes to tech. But of course, strategists are enthusiastic about tech, about AI, that’s still a driver of productivity. That’s a driver of higher earnings for companies. And one other note to make as well is that the incentives of the big beautiful bill, those are expected to really be seen this year because those incentives, incentives for CAPEX also, that’s when all and said and done expected to lower the tax rate for corporations by about 3% according to some estimates. So that goes to the bottom line of a company as well. Josh.