"At this stage, the market is expecting the same sort of thing, where companies will meet analysts' expectations."
More than halfway into the second-quarter reporting period, S&P 500 company earnings are estimated to have increased 8.1 per cent over the same quarter a year ago, compared with a 5.6 per cent estimate at the start of July, according to IBES data from Refinitiv as of Tuesday, Reuters reported.
Regardless, domestic results will be "keenly watched" and "we could be in for a bit more of a rally", he said.
Investors will be particularly interested in companies' outlooks. Jarden analysts said they expect outlook statements to contain a number of caveats and likely reference the ongoing covid disruption to supply chains and workforce availability and, as a result, inflationary pressures and higher interest rates.
The first big company to report is Contact Energy on August 15, and Jarden is tipping earnings before interest, taxes, depreciation, and amortisation of $537 million versus the market consensus of $520m.
Contact Energy added 0.4 per cent to $7.68. Covid shadow On the covid front, Jarden said it expects the 2022 financial year to mark the end of underlying losses for Auckland International Airport as travel resumes.
Auckland Airport shed 0.3 per cent to $7.73. For Air New Zealand, which was unchanged at 62 cents, "while we expect top-line momentum to rebuild slowly, financial losses could still be a reality into FY23", it said.
The S&P/NZX 50 index slipped 7 points, or 0.1 per cent, to 11,728.47. Turnover on the main board was a quiet $100.5m.
Meanwhile, on the earnings front, T&G Global, the fruit marketer controlled by Germany's BayWa, said its net profit rose to $5.8m, or 2.4 cents per share, for the six months to June 30, versus $3.4m or 0.6 cents a share in the months to June 30, 2021.
The stock, which is tightly held, fell 1.5 per cent to $2.70. NZ Automotive Investments was unchanged at 53 cents.
NZX's market regulator has asked NZ Automotive Investments' board of directors to provide an assessment as to whether their proposed replacements can be considered independent.
NZX listing rules require a company to have at least two independent directors, which RegCo said was critical to protect shareholders. Failure to meet these requirements may lead to it suspending trading in NZAI shares.
A2 Milk was unchanged at $5.58, having gained this week on the hope that it might yet get approval to export infant formula to the US. The company is now 70 days behind Bubs Australia, which submitted its application nearly two weeks before A2 Milk and Fonterra in May.
Units in the Fonterra Shareholders Fund, meanwhile, shed 1 per cent to $2.92. Third Age Health Services continued to recover, adding 4.7 per cent to $2.25, while Plexure Group was the biggest gainer, adding 12.5 per cent to 40.5 cents.
My Food Bag showed some signs of life, adding 4 per cent to 79 cents. Exporter Fisher & Paykel Healthcare shed 1.0 per cent to $20.75. Infratil added 0.7 per cent to $9.075. Investors have been cheered by news that its Longroad Energy investment has agreed to sell a 12 per cent stake to German insurer Munich Re for US$300m.
Sanford posted the biggest decline on the top 50, falling 2.2 per cent to $4.09 in relatively light trading, while Mainfreight slipped 1.9 per cent to $78.50. Skellerup posted the day's biggest gain on the benchmark index, up 4.5 per cent at $5.86.
The NZ dollar, meanwhile, was also largely steady, trading at 62.93 US cents at 5pm, down from 62.91 Thursday.
- BusinessDesk
