Earnings Season Continues with S&P 500 Expected at 5.1% EPS Growth
Focus remains on earnings, US election, and Fed rate decision this week with large cap companies reporting strong results.
Earnings Update
Last week showcased the beginning of peak earnings season with tech giants posting mixed results. Alphabet, Meta, Microsoft, Apple, and Amazon delivered their earnings, with Amazon standing out with impressive growth in AWS and advertising revenues.
Consumer-facing industries like fast-food chains also reported positive results, although Chipotle fell short of revenue estimates.
With over 70% of S&P 500 companies reported, the YoY growth stands at 5.1%, marking the fifth consecutive quarter of growth.
Solid Economic Data Supports Soft Landing Scenario
US economic data from last week continued to show strength, including a surge in Consumer Confidence and strong private job creation numbers. GDP for Q3 also came in at a solid 2.8%, supporting the soft landing narrative.
Inflation remains on target, with the Federal Reserve expected to cut rates this week despite a robust economy. Nonfarm Payrolls data showed a slight slowdown, attributed to external factors like the Boeing strike and hurricanes.
Outlier Earnings Dates This Week
Several large companies on major indexes have outliers in their Q3 earnings dates, which may indicate potential negative news. Energy companies like Williams Companies, APA Corp, and Halliburton are expected to report lower YoY earnings and revenue growth.
This week marks the second peak week of earnings season, with over 3,700 global companies expected to report results.
Image: corporate earnings reports calendar week november 4
Source : www.seeitmarket.com