Second-quarter earnings season began this week with several large financial firms -- including JPMorgan Chase (JPM, 114.67) -- ready to report.
Other notable names on the earnings calendar include air carrier Delta Air Lines (DAL, $29.94) and insurance giant UnitedHealth Group (UNH, $524.45).
"For the second quarter of 2022, the expected earnings growth rate for the S&P 500 is 4.3%," says John Butters, senior earnings analyst at FactSet.
"If there is a 4.3% real growth rate for the quarter, it would mark the lowest earnings growth rate reported by the index since Q4 2020 (4.0%)."
This 4.3% estimate is lower than the 5.9% projected March 31 earnings growth rate, with seven sectors expected to report lower second-quarter earnings than those projected at the end of Q1.
That's led by a 20.9% drop in earnings expectations for consumer discretionary stocks, according to Butters. Energy stocks, on the other hand, saw their earnings estimates rise 42.2%.
“The energy sector will be closely monitored throughout the reporting period,” says Ross Bramwell, principal at investment advisory firm Homerick Berg.
"As overall Q2 earnings estimates are in the mid-single-digit range, it is likely that without the energy sector overall earnings growth will be negative."
Bramwell says trends show that negative earnings guidance is being issued by more S&P 500 companies for the second quarter and full fiscal year than recent averages.