As the third quarter earnings season kicks off, Apollo Global Management chief economist Torsten Sl?k joins Market Domination to break down what he expects this time around.

On the consumer front, Sl?k notes that high-end consumers are doing well since they "generally own the S&P 500 (^GSPC), generally own their home," and have high levels of cash flow. However, lower-income households are struggling as delinquency rates rise for credit cards and auto loans. In addition, low-income households are either low or out of savings while high-income households are seeing a rise in their prospective savings.

"It is a very bifurcated outlook for the consumer where net-net, the result is still that the overall picture for consumption is holding up," Sl?k tells Yahoo Finance.

Meanwhile, he explains that "Corporate America is still doing well." He notes that profit margins are at high levels, and companies are benefitting from several tailwinds, including AI, interest rate cuts, and the energy transition. In addition, he points to tailwinds from the Biden administration's CHIPS Act, Inflation Reduction Act, and Infrastructure Act as giving corporations a boost.

Ultimately, Sl?k expects corporate earnings to continue to do well during the third quarter earnings season.

Note: Apollo Global Management is Yahoo's parent company.

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This post was written by Melanie Riehl