The Dow Jones Industrial Average (DJIA) briefly hit a record high in yesterday’s trading session. But the optimism could be short-lived with all signs pointing to a disastrous second-quarter earnings season.
77 percent of companies that have released Q2 guidance have warned they’ll underperform Wall Street estimates. It’s the most negative earnings backdrop in 13 years.
Traders are distracted by Trump’s truce with China and the tantalizing promise of interest rate cuts. But they’re ignoring the wildly negative data coming out of corporate America itself.
Yesterday’s relief rally, which pushed the US stock market to record highs, is already fading. At 7.03 am EST Tuesday, Dow futures slumped 24 points (0.09 percent) pointing to a flat open at the bell.