Morning Notes — Clarity

The CQ2 earnings season was far better than expected and it’s difficult not to be upbeat about the performance of corporate America during the pandemic.  The CQ3 earnings season that kicks off on 10/13 should provide welcome fundamental clarity on business conditions into Q4.  The early days of earnings season are always weighted to large cap bank results where management commentary on consumer credit trends will help inform markets on economic conditions.  The US and global economy continues to recover from pandemic-related shutdowns with the medical community attacking the virus on multiple fronts.  A vaccine may be several months away, but improving treatments, treatment protocols and rapid testing will keep the recovery on track.  Once we get deeper into earnings season, we should see evidence of growth expanding across more sectors than Tech, which should lead to increased market breadth.