Given that labor market data shows the economy is cooling rather than on the brink of recession, HSBC strategists say they are increasing their overweight positions in US stocks considering the resilient earnings prospects for the third quarter. The team led by Max Kettner states in their report that surpassing the third-quarter earnings expectations in the US corporate sector "doesn't seem difficult", and they mention that certain sentiment, positioning, and technical indicators are flashing contrarian buy signals.