On Friday, Q2 earnings season kicks off when JPM reports just before 7am followed by WFC, and C, while MegaCap tech reports earnings in two weeks (Jul 26). 82% of S&P 500 firms (80% of market cap) will have reported by August 7th, and the bulk of reporting takes place during the week of July 24, when 48% of S&P reports.
Some - like Morgan Stanley's Michael Wilson - who have predicted doom for stocks all year, are confident that this is when traders finally realize that the bottom is falling out of the market. And sure enough, between collapsing margins, a busted Chinese recovery and a global economy sliding into recession, expectations are very low.
