- Can positive surprises continue?
- US market unfazed by debate.
Election uncertainty doesn’t seem to be bothering US stock market investors. Relief that the Federal Reserve’s favoured inflation indicator, the personal consumption expenditures (PCE) measure, came in as expected for May was far more important to markets than Joe Biden’s poor performance in the presidential debates. UK share indices are a bit softer in general election week, but the fundamentals of earnings momentum are worth watching as good companies may bounce back quickly if any election dip presents a buying opportunity.
Our UK large-cap share price and earnings per share (EPS) momentum screen is once again topped by Rolls Royce (RR.) although it has the same rating – the share price is still 26 times analysts’ consensus next 12 months’ forward EPS estimates – as when we last ran the screen. Half-year results are due on 1 August.
