Capital Markets: Observations & Insights

Earnings Drove Sector Performance YTD Performance

• In contrast to much of last year, this year sectors with the strongest earnings performance YTD had the best stock performance

Leading Price & EPS Performance

10 15 20 25 30

100

% Companies Beating Estimates

80

60

40

0 5

S&P 500 Sector

Returns YTD (%)

20

-10 -5

0

Real Estate

Energy

Utilities

Telecom

S&P 500

Materials

Financials

Industrials

Technology

Health Care

Consumer Staples

Consumer Discretionary

Source: FactSet as of 930/2017. Companies beating estimates based on average of earnings seasons reported in 2017: Q416, 1Q17, and 2Q17.

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