Analyst Estimates Ahead Of Earnings

Good morning. With the holiday behind us, Wall Street will return to work this week with the start of earnings season. According to Bloomberg, analysts estimate that Standard & Poor's 500 Index companies posted an average profit growth of +4.8% in the second quarter. As you may recall, earnings grew +10.3% in the first quarter so the key question of the moment is whether analysts have once again set the bar too low ahead of the news.

At least so far, stocks looking to start the week on the right foot include ALNY, SGTL, CYTR, FSLR, XFML, CHNR, MTLK, LOCM, SILC, FINB, SCHN, SNCR, ISIS, AFSI, HOKU, JASO, ARWR, ASTI, SOLF, GERN, ESLR, GILD, DSTI, CMI, and FRPT. Meanwhile, pockets of weakness can be found in shares of LXK, CXSP, HBAN, UAUA, SONS, and BIDU.

Ahead of the opening bell, premarket trading has adopted a modest positive tone without any economic reports (none are schedule for today) and no exciting M&A activity to ponder. I suspect the positive tone is in place due primarily due to strength in overseas markets while falling oil prices along with expectations for another earnings season rally. Have a great day!