Weekly Commentary: Earnings outlook - Show us the growth

Higher expected corporate earnings mask broad pressure under the surface. We see more earnings pain ahead and look for opportunities at the sector level. U.S. Treasury yields surged and stocks dipped last week. Data confirmed the U.S. labor market is still tight. We see signs markets are adjusting to the new regime. All eyes are on U.S. CPI inflation data out this week. Continued evidence of stubbornly high inflation could add momentum to the recent rise in bond yields.