Q3 Earnings Preview: Analyst Predicts Tech Will Triumph While Energy Will Struggle

As the third-quarter earnings season kicks off, one analyst examined the sectors anticipated to perform well and those likely to be left in the dust.

The Data: Scotiabank analyst Hugo Ste-Marie previewed third-quarter earnings in a note published Wednesday.

The analyst believes that earnings will “nosedive” in a temporary blip, while also saying that investors will punish earnings misses less this quarter than last quarter.

The S&P 500, tracked by SPDR S&P 500 ETF Trust (NYSE:SPY), is expected to register a modest 0.5% earnings growth quarter over quarter and 3.9% on the year. The latter figure came in at a much higher 12% last quarter.

“After a huge run-up in equity ...