Stocks are moving higher ahead of earnings season. Many of the big technology stocks are expected to do well. However, the same can't be said for all sectors. According to FactSet, consumer staples stocks are expected to average negative earnings growth of around 3%. That’s better than consumer discretionary stocks, which are expected to average negative growth of approximately 5.4%.
This bearish earnings outlook confirms that many of the same themes from the first quarter are still in play. Inflation is sticky in some consumer-facing areas like food. Companies are also likely to continue hedging, if not abstaining from issuing future guidance, due to unknowns around tariffs.
