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Katherine: 00:00 We're heading into the second half of the year. I got asked you, what are you paying attention to the most in the market right now?

Chris: 00:06 Well, everybody's focused on G-20 and I think the outcome of that will be very telling. You know, I think it can go one of two different ways, right? So the first is nothing happens, in which case I think that gives the Fed, excuse me, a little room not to cut rates in July like a lot of people think might happen that could get a little, a little rocky. If we come out and we see tariffs happen, then I do think the Fed cuts, but the big story is going to be earning season, we're right at the cusp of it. So we're paying attention to things that happened this week. You know you mentioned General Mills, McCormick, ConAgra...

Chris: 00:36 The set up for this is earnings expectations for the S&P 500 is about 10% improvement, second half of the year versus first half, but first quarter, second quarter, and now third quarter of 2019 have negative comparisons. That means there's a lot of pressure on the December quarter and when we think about what's happening, all the economic data we're getting both for the globe and for the U.S. slowing, we're seeing GDP for the second quarter around 1.4-1.5%, there's that unknown certainty for tariffs, which could continue, right? We've got dollar headwinds that are getting a little better recently, but still dollar headwinds. I think that's a lot of uncertainty when companies are going to be issuing expectations for the back half of the year. That's a long way of saying, I think that 10% expectation, second half first half is rich. It has to come down. So it could be a very bumpy earnings season.

As Wall Street heads to its second half of the year, what's the one thing investors should keep their eye on?

Chris Versace, Real Money contributor and co-manager of the Trifecta Stocks portfolio and Stocks Under $10, shares his thoughts on the floor of the New York Stock Exchange.

Here's an excerpt from the video transcript:

"The big story is going to be earning season, we're right at the cusp of it ...The set up for this is earnings expectations for the S&P 500 is about 10% improvement, second half of the year versus first half, but first quarter, second quarter, and now third quarter of 2019 have negative comparisons. That means there's a lot of pressure on the December quarter," Versace said.

He continued, "I think that's a lot of uncertainty when companies are going to be issuing expectations for the back half of the year. That's a long way of saying, I think that 10% expectation, second half first half is rich. It has to come down. So it could be a very bumpy earnings season."

Watch the video above to hear the full clip.

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