Strong US earnings drive stocks up, Europe reporting muted
As earnings reports trickle in, US standing out while Europe lags
With only 12% of European companies having already reported, there is room to catch up to a strong showing in the US, but so far the region has “clearly disappointed,” Bloomberg reports, citing Julius Baer strategists.
Nearly 30% of US earnings have come in, and are as a whole beating estimates, driving stocks higher today.
Morgan Stanley reported Monday that capital goods have been a source of weakness in Europe, including misses from companies such as Atlas Copco and Sandvik.
Stoxx 600 earnings estimates dropped to 12.4% as of July 21, versus 13.4% the month prior.