Bloomberg Intelligence's 'Equity Market Minute' 7/15/2021

The video discusses the expected record-breaking earnings growth for the S&P 500 in the second quarter, with a focus on operating margins and capital spending as key drivers of stock prices. Analysts predict a rise in net income margins, especially for cyclical sectors, and an expansion in capital spending if companies feel confident in the outlook. The industrial commodity complex is highlighted for its low capital spending, with sales growth expected to rise significantly. The video concludes with an optimistic tone for the equity market.

What is the expected earnings growth for the S&P 500 in the second quarter according to analysts?

• 65%

• 80%

• 50%

• 100%

Which factors are considered more important than earnings growth as drivers of stock prices?

• Dividend yields and stock buybacks

• Operating margins and capital spending forecasts

• Market volatility and inflation rates

• Interest rates and currency exchange rates

What is the expected trend for net income margins in the forecast horizon?

• They are expected to rise

• They will fluctuate unpredictably

• They will remain stable

• They are expected to decline

Which sectors are expected to see a significant rise in sales growth over the next four quarters?

• Industrials, energy, and materials

• Technology and healthcare

• Consumer goods and services

• Financials and real estate

What is the current state of capital spending relative to sales in the industrial commodity complex?

• At a cycle high

• Rapidly increasing

• At a cycle low

• Stable and unchanged