“First the fears with China have been alleviated, now it looks like Brexit negotiations are all but signed, sealed and delivered,” MUFG chief economist Chris Rupkey said. “One by one the major global risks to U.S. economic growth are falling by the wayside which gives investors the green light to back up the truck and buy lots of stocks.”
However, S&P 500 corporate earnings are expected to fall 4.6% in the third quarter, according to FactSet. This would be the first time that index company earnings have fallen for three straight quarters since the fourth of quarter of 2015 through the second quarter 2016, according to FactSet analyst John Butters. However, corporate buybacks are again seen supporting earnings per share.
