Nick Colas on June S&P 500 projections
It was a bumpy May for stocks.
The S&P 500 eked out a gain of nearly 1% for the month, though sell-offs in high tech and growth names made for a volatile stretch.
Nick Colas, co-founder of DataTrek Research, says it all comes down to earnings.
“The funny thing about this year is that we’ve seen more earnings revisions than we’ve seen stock price performance,” Colas told CNBC’s “ETF Edge” on Monday. “We’ve seen 12% upside to earnings expectations this year … It’s going to come down to Q2 and Q3 earnings.”
Analysts surveyed by FactSet currently expect second-quarter S&P 500 earnings to rise by roughly 60% off a depressed pandemic quarter this time last year. The big banks will kick off the season when they report mid-July.
“The numbers are still too low, it seems to us, for Q2, so, we should have another strong earnings season coming up, but that will be kind of a tug-of-war until then,”…