Earnings: Where the Q2 Surprises Could Be

The pullback in equity indexes on July 2 in response to the larger-than-expected drop in June nonfarm payrolls shouldn't have been a surprise, as light preholiday trading probably exacerbated the data-driven sell-off. But the disheartening employment snapshot doesn't necessarily bode any worse for second-quarter corporate earnings than what most investment strategists and economists were already anticipating.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.