On the Radar: What is the outlook for U.S. earnings?

The outlook for corporate profitability has slowed after last year's tax cut boosted double digit gains, but with continued economic expansion, subdued inflation, and low interest rates, we see enough earnings growth ahead to push stocks higher by year-end.

To view this email as a web page, click here. OnTheRadar May 2019 FAQs on the Markets and Economy On the Radar is a biweekly publication providing quick and concise answers to the topical investment and economic questions that are on investors' minds. New questions in this issue: 1. What is the outlook for U.S. earnings? The outlook for corporate profitability has slowed after last year's tax cut boosted double digit gains, but with continued economic expansion, subdued inflation, and low interest rates, we see enough earnings growth ahead to push stocks higher by year-end. 2. With consumer confidence so high, what does that mean for the future? The May release of the University of Michigan Consumer Confidence report shows more than a 10-point jump in the survey since the beginning of the year and places it at a 15-year high. 3. What insight was gleaned from the release of the Fed minutes? The Fed is in no rush to change the level of interest rates. Even if the economy strengthens, which it believes, the Fed plans on keeping interest rates unchanged for the year. 4. What is driving performance in the High Yield Municipal sector this year? High yield (HY) municipal bonds have returned 5.3% YTD, according to the Bloomberg Barclays family of indices. 5. What is City National Rochdale's investment outlook? Given our positive assessment of the fundamental backdrop, we remain bullish on equities in general for 2019 and continue to see attractive prospects in the opportunistic fixed income class. Read More on CNR.com » Follow Us Investment management services provided by City National Bank through its wholly-owned subsidiary City National Rochdale, LLC, a registered investment advisor. City National Bank Member FDIC. Investment Products are: • not insured by the FDIC. • not a deposit or other obligation of, or guaranteed by, the bank. • subject to investment risks, including possible loss of the principal amount invested. Unsubscribe from this list  |  Update email preferences This message has been sent to bank@banking.offers.report. Please do not reply to this email. To ensure the delivery of future emails, please add email@emails.cnb.com to your email address book or safe sender list. Copyright © 2019 City National Bank – All Rights Reserved. 350 South Grand Avenue, Los Angeles, CA 90071 City National Bank is a subsidiary of Royal Bank of Canada. TERMS & CONDITIONS  |  PRIVACY STATEMENT NMLSR ID# 536994 | City National Bank Member FDIC