Beware the US market's earnings sleight of hand

Beware the US market's earnings sleight of hand. US companies will hand down their June quarter reports in two weeks. Analysts are expecting revenue growth of 3% and earnings growth of around 5% for the market in the quarter. (The market consensus expects bank earnings to be lower by 2% in the June quarter.) But what some people may have missed is the fact that those earnings expectations have been falling. Three months ago, expectations were for higher growth: close to 4% for revenue and up to 7% for profits. Why does that matter? When the market 'exceeds' those lower expectations, it will be another reason to push the market higher, yet the earnings outlook has actually weakened. Read more: (VIEW LINK)