Energy and tech lead the pack
Energy has seen the sharpest upgrade of any sector, with estimated earnings jumping nearly 50% since the end of March. The driver is oil, which averaged around 45% higher year-on-year through the quarter.
Curiously, energy has also been the worst performer on price over the same period, falling around 14.5%. That gap between rising earnings and falling share prices is the sort of divergence that tends to catch the eye. Traders looking at the sector can explore oil trading.
Technology tells a different tale. The sector recorded the second-largest earnings upgrade and, unlike energy, led all sectors on price with a gain of roughly 29%. Semiconductors are the engine here, expected to drive earnings growth of well over 100%.
There is a record behind the enthusiasm too. A record number of technology companies have issued positive earnings guidance for the quarter, well above the long-run average and a sign of unusual confidence from management teams.