Market participants closely track corporate earnings for clues regarding the severity of the potential recession triggered by the high inflation and consequent interest rate increases. The rising odds of an economic downturn, an unexpected decline in global business activity, and a sudden rise in weekly jobless claims are expected to keep the market highly volatile in the upcoming weeks.
Although the corporate earnings reports have been impressive, with 68% of companies beating consensus estimates as of July 22, the persisting macroeconomic headwinds are expected to keep the market sentiment bearish. Therefore, it could be wise to bank on quality dividend-paying stocks to generate a steady income stream.
