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Real Time Insight

If it wasn't for the Finance sector, second quarter earnings season would be a dud. According to Zacks Director of Research Sheraz Mian in his weekly Earnings Outlook article, total earnings for the Finance sector in Q2 are up an impressive +30% year-over-year. But excluding Finance, total earnings for the rest of the S&P 500 companies would be down -2.8%.

So why were earnings in the Finance sector so hot?

These two charts will tell you pretty much everything you need to know:

(Improving credit quality is a good thing, but as a bank, I'd rather have strong loan growth and net interest margin expansion boosting my bottom line than simply taking a lower provision for loan losses... but I digress.)

Mr. Mian also points out in his article that the Finance sector has reclaimed its leadership role in the S&P 500, as it now contributes a higher percentage of earnings than any other sector for the first time since the financial crisis. Finance is expected to account for 19.2% of total S&P 500 earnings in 2013 compared to Technology's 18%.

So does the lack of earnings growth outside of Finance concern you? How about the fact that Finance is once again the largest sector in the S&P 500?

Chime in below.

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Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.65 +6.44%
RF MICRO DE… RFMD 12.44 +5.74%
VASCO DATA… VDSI 14.82 +5.03%
STRATTEC SE… STRT 80.76 +3.67%
PATTERSON-U… PTEN 34.50 +2.86%