Updating the earnings season so far – of the 451 companies in the Standard & Poor’s 500 Index that have reported third quarter earnings, 76.9% have reported earnings above analyst expectations, which is above the long-term average of 64%, and in-line with the average over the past four quarters of 77% – according to I/B/E/S from Refinitiv.
There are still some notable earnings reports to come, and in the week ahead we’ll get a good look at the retail sector. Companies including Home Depot, Gap, Advance Auto Parts, Macy’s, Walmart, and Nordstrom are all scheduled to report, so we’ll get an indication of consumer strength/spending ahead of the upcoming holiday shopping season. Away from retail, companies such as NVIDIA, Tyson Foods, Cisco Systems, and Rockwell Collins are also due out with earnings this week.
Earnings season is being played out in a volatile market. Stocks rallied last week after elections, with the market seemingly relieved and content with divided government. Even though the elections are behind us, Federal Reserve policy and trade issues with China remain ahead of us – resulting in more volatility again this morning. Remember, investing is a marathon not a sprint!
All the best,
Southport Station Financial Management, LLC