As earnings support U.S. stock rebound, worries over future profits grow

Lewis Krauskopf

NEW YORK- Stronger-than-expected corporate earnings have helped fuel the rebound for U.S. stocks but some investors are pointing to potential risks ahead for profits that could sap the market’s momentum.

With the vast majority of S&P 500 companies reported, second-quarter earnings are expected to have climbed 9.7 percent from a year earlier, well above the 5.6 percent estimated on July 1, according to Refinitiv IBES. The robust profits have supported a rally that has taken the S&P 500 up about 14 percent this quarter, after a brutal first half.

Some market participants are growing concerned, however, that strong corporate numbers may not last, as c…

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