chart by CNN/MONEY
Third quarter (Q3) earnings are expected to see growth of 19.3% and revenue growth of 6.9% for the S&P 500, according to FactSet, the US financial data group.
If we see double-digit earnings growth, then this will be the sixth of the past seven quarters of such strong performance from US firms.
Q2 earnings rose 27%, while sales were up 11%, and corporate profit margins hit a new record high of 11.4%. Earnings continue to rise faster than the S&P 500 itself, a sign that this bull market is being driven higher by corporate earnings, and not the chimeras of quantitative easing (QE) or stock buybacks. Overall, earnings are expected to rise 21% in 2018 compared to 2017, with oil prices providing a boost to the energy sector and US tax cuts helping to improve performance for the S&P 500 as a whole.
Financials are expected to report earnings growth of 34.3% but are the only major sector on the benchmark index expected to report a drop in revenues, though it will be only around 1.4% or so.
Energy is expected to post the biggest jump in top and bottom line growth on the back of higher oil prices in the quarter and easier year-on-year comparisons with the same period in 2017.
As usual, it will be the results of tech megas, Apple, Google, Amazon, Netflix, Alphabet (Apple) and Microsoft that determine how well the market performs in the next six weeks
Original source: NASDAQ