- It's unlikely that the strong dollar will impact Q3 earnings as much as people think, Diane Garnick, CEO of global asset management firm Clear Alternatives says. But it will impact Q4 earnings. We're likely to see companies meet or exceed earnings in Q3, but give downward forecasts for Q4, she says.
- Companies with bigger international exposure, like Wal-Mart (NYSE:WMT) will lower their estimates more. The same is true for sectors dominated by companies with global exposure like financials (NYSEARCA:XLF).
- Conversely, companies like Walgreen (WAG) who are almost all U.S. dollar based will be less impacted by a stronger dollar. Also relevant for ETFs like XLP and XLU.
- Link: Reuters Insider