Aluminum giant Alcoa kicked off the second quarter earningsseason to a positive start by beating estimates on Monday afternoon. Will more companies follow the trend? Sam Stovall, chief investment strategist at Standard & Poor’s shared his insights.
“In general, the earnings picture is looking pretty good,” Stovall told CNBC. “We’re expecting very strong year-over-year increases and operating results not only in this quarter, but also for the full year at a decelerating rate of pace.”
Stovall said he expects to see an improvement in demand for semiconductors, while sees the consumer-related sector to remain an area of weakness.
“Strongest growth is likely to come from financials because of such a severe disparity between last year’s and this year’s numbers,” he added. “Energy will also do very well because of the improved pricing of the reserves. Materials are also expected to show good earnings growth and technology among those leaders.”
Scorecard—What He Said:
- Watch Stovall's Previous Appearance on CNBC (Jul. 6, 2010)
Strategists on Earnings Season:
Double Dip or New Bull? Earnings May Tell
CNBC Data Pages:
Earnings Coming Up:
Bank of America
No immediate information was available for Stovall or his firm.