Earnings Update – Monday Morning Market Memo – July 31, 2023

Earnings Update – Monday Morning Market Memo – July 31, 2023

Overall, results for this Earnings Season have been both better-than-feared, and better-than-expected.  For the second quarter of 2023, just over ½ of the Standard & Poor’s 500companies have reported actual results.  Of these companies, 80% have reported Earnings Per Share above estimates, which is above the 5-year average of 77%, and above the 10-year average of 73%, according to data from FactSet.

For a flavor of the earnings action from last week: Boeing shares took off, rising nearly 9%, after beating estimates on both the top and bottom lines, and on cash flow;  Alphabetshares rallied over 5% after their quarterly report spelled out better-than-expected results; Meta Platforms results were liked by shareholders, and the stock jumped over 4% after double-digit revenue growth; shares of Chipotle Mexican Grill, however, cooled off, falling nearly 10% after the company missed on revenues, even though their earnings were hot; Microsoft shares were not on firm ground, slipping nearly 4% after slowing cloud growth dampened sentiment.

Looking to the week ahead, we’ll get a fresh and diverse batch of earnings reports.  Mega cap tech companies Apple & Amazon.com will highlight this week’s earnings parade.  Other companies reporting include Advanced Micro DevicesCaterpillarKraft HeinzBooking HoldingsDraftKingsExpedia GroupKellogg,ModernaCVS HealthStarbucks, MerckPfizer, and Amgen. Along with these earnings reports, the financial markets will focus on the important July Jobs Report, scheduled to be released Friday morning.

Expectations are the U.S. Bureau of Labor Statistics will report the economy added 200,000 jobs in July, and that the unemployment rate comes in unchanged at 3.6 percent.  Along with inflation, unemployment data is highly important in determining Federal Reserve monetary policy, and it can often be market moving.  We are ready for an important and busy week ahead!

As always, don’t hesitate to contact us with any questions or if you would like to schedule a meeting.



All the best – Southport Station Financial Management, LLC