The second quarter earnings season is kicking off
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The South Korean stock market posted an astonishing rise in the first half of the year, driven largely by the artificial intelligence-related semiconductor boom that benefited both Samsung and SK Hynix. As foreign investors became net sellers, the role of local retail investors has become increasingly prominent in recent times. However, the introduction of leveraged ETFs tracking a single stock further exacerbated the already mounting volatility in South Korea’s stock market. Following a sharp rally, a reversal occurred in mid-June, followed by a significant correction in July. In light of these developments, we examined what might happen next on the South Korean stock market.
The European defense industry could perform well
The European defense sector has come to the forefront in our momentum-based screening list. European companies that stand to benefit from rising defense spending remain the focus of investor attention. Based on our screening, two French companies—Dassault Aviation and Thales—have come into focus. As a manufacturer of Rafale fighter jets and Falcon business jets, Dassault Aviation is a key player in the global aviation industry, while Thales is one of the leading suppliers of defense electronics, radar, communications, and cybersecurity systems. The technical outlook for both stocks has been favorable recently, and significant opportunities may arise based on the technical patterns that have formed. As a result, it may be worth keeping an eye out for long entry opportunities in these stocks in the near future.
This week, the earnings season kicks off in the US with the latest figures from Pepsi and Delta Air Lines, followed next week by the second-quarter earnings figures from major US banks. Among Hungarian companies, AutoWallis will publish its latest sales report on July 15, and PannErgy will release its production report on the same day. For European companies, the earnings season will pick up speed during the week of July 20.
The second-quarter earnings season is kicking off in the US; according to FactSet, the estimated earnings growth rate for the S&P 500 in the second quarter could be 23.3% (year-over-year). However, among the index components, 48 companies have issued negative EPS guidance for the second quarter, while 63 have issued positive guidance.
As of noon on Wednesday, 3% of the companies in the S&P 500 had already released their latest figures; In terms of revenue, these companies reported results that were, on average, 4.7% above expectations; 60% of the companies that have released their earnings reports so far delivered a positive surprise on revenue, while 6.7% delivered a negative surprise. In terms of EPS, companies that have released their earnings reports so far have, on average, reported earnings 16.1% above expectations; 93.3% of the companies that have reported so far delivered positive surprises, while none have delivered negative surprises so far. Among the components of the Stoxx 600 index, only four companies have released their earnings reports so far.
This week, Pepsi and Delta Air Lines will report their latest figures, and in the week of July 13, earnings season will continue with the latest results from large US banks. In Europe, the earnings season will pick up speed in the second half of the week of July 20, while among Hungarian companies, AutoWallis will publish its latest sales report and PannErgy will release its production report on July 15.
Second quarter earnings dates – 2026.07.13. – 07.17.
Second quarter earnings dates – 2026.07.20. – 07.24.
S&P500 second quarter earnings dates - 2026.07.09. – 07.24.
Stoxx 600 second quarter earnings dates - 2026.07.09. – 07.24.
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