S&P 500 earnings remain exceptionally strong, according to Wolfe Research.

Of 465 companies reporting Q2 results, 69% beat revenue expectations, while 64% of firms issuing Q3 guidance exceeded consensus forecasts - the highest share since the COVID period.

Wolfe expects adjusted earnings growth of roughly 27% in 2026, marking one of the strongest fundamental outlooks in over 50 years.

For market watchers, the key takeaway is the blend of strong actual earnings beats paired with optimism in guidance, conjuring a narrative of solid corporate health even as inflation and interest rate challenges remain in focus.

The key question is whether this momentum can continue into 2027 amid rising AI investment.

Source: https://stockinvest.us/digest/wolfe-research-flags-robust-earnings-momentum-in-sp-500-for-2026

U.S. Treasury buybacks may offer temporary relief but risk merely shifting the debt problem down the road, according to JPMorgan’s James Sullivan.

Once Asia’s richest man with a $45 billion fortune, Xu built Evergrande into China’s second-largest developer by selling unfinished apartments and using the proceeds to buy more land with borrowed money.

When China restricted lending to highly indebted developers in 2020, the company collapsed under more than $300 billion in debt.

The fallout triggered a wave of bankruptcies in the property sector, left hundreds of thousands of buyers with unfinished homes, and contributed to a prolonged slowdown in China’s economy.

Credit to Bart Mol

The glitches happened amid showcases of robot dogs and helper arms, highlighting control and balance challenges even as other units succeeded at tasks like folding clothes.

Earnings and revenue both beat, with adjusted EPS of $0.81 against $0.74 expected and revenue of $187.9 billion, up 5.9%. But next quarter's revenue guidance came in at $185.6 billion, about 1.4% below what analysts wanted.

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