Financials Fumble, COVID Concerns Creep Back In

By Lori Calvasina
Published July 26, 2021 | 6 min listen

In this week’s episode, we take a look at what we learned from week 1 of 2Q21 reporting season. The two big things you need to know: (1) 2Q21 reporting season got off to a sour start, but it’s too early to gauge the overall tone, as last week’s reporters were mostly Financials, and their weak stock price reactions, stand in contrast to the more positive reactions seen by the early reporters. (2) COVID discussions haven’t disappeared from management commentary which have highlighted ongoing vigilance on the Delta variant. This may contribute to additional pressure on the reflation trade in the near term, as the Large/Small, Growth/Value, and Secular/Cyclical trades have started to move in tandem with domestic case counts again.

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Lori Calvasina

Lori Calvasina
Managing Director & Head of U.S. Equity Strategy, RBC Capital Markets


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