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Don't Fret an Earnings Recession and Keep an Eye on These Market Catalysts

What are you watching in the markets? We're in the middle of earnings season, and many on Wall Street were worried that this earnings season would show proof of an earnings recession. However, so far, so good. Kristina Hooper, Chief Global Market Strategist at Invesco, discussed why she isn't worried about an earnings recession. "Well, there is another story which is that companies have lowered expectations. I mean they've really done that almost across the board in terms of sectors and what that has done has caused people to anticipate that we will see an earnings recession because they've lowered their forecast so much. But the reality is many of them are coming in and beating those estimates and so we're likely to see earnings season wind up being flat to maybe slightly higher. So I don't anticipate an earnings recession this quarter," she said. Hooper also weighed in on the trade war and when she expects to see a trade deal. "The 5th of Never," said Hooper. "My expectation is that we're not going to see a trade deal. I just can't find a compelling reason for China to make the major concessions that the United States wants. So, my expectation is that we're likely to see trade talks occur in fits and starts, but nothing material will occur. China doesn't have an incentive to do that." Watch to see what Hooper has to say about earnings, oil, tariffs and trade.

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