The second quarter reporting season got off to a rough start with investors reacting to some big bank earnings. However, optimism for a healthy earnings season continues to abound.
The week that was: Shares of large high-profile banks including JPMorgan Chase & Co. JPM, Citigroup Inc. C AND Wells Fargo & Company WFC came under selling pressure after their earnings release. JPMorgan fell 1.21% after falling more than 2.5% intraday on Friday. The weakness was despite the company reporting a double whammy. Wells Fargo fell 6.02% as higher deposit costs weighed on its bottom line.
Delta Air Lines, Inc. sprout shares fell about 7% in two sessions after the airline reported a drop in profit despite beating estimates.
We’re in the early days of earnings with only 5% of S&P 500 companies reporting earnings so far, according to financial data analytics company FactSet. Of these, 81% reported earnings beat and a more modest 56% reported a positive earnings surprise.
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What to expect next: Combined earnings per share growth for S&P 500 companies is expected to be 9.3% for the second quarter, FactSet data showed. If the estimated increase is hit, it would mark the highest year-over-year growth rate since the first quarter of 2022, when growth was 9.4%, he said.
The currently estimated 9.3% marks an improvement from the 8.9% expected at the end of June.
Nine of the 11 S&P 500 sectors are expected to report year-over-year earnings growth in the second quarter, with four of them — communications services, IT, health care and financials — poised to report double-digit gains, it said. The facts. On the other hand, the materials sector is expected to report a decline in profits.
The estimated mixed income growth rate for the second quarter is currently at 4.8%.
Notable among the sectors and industries in use this week include the rest of the big banks, a host of regional banks, airlines, transportation, oilfield services and healthcare companies. European chip equipment company ASML Holding NV ASML is among the top tech reporters this season and his report could grab a lot of eyeballs.
In a note released on Sunday, analyst Wedbush Daniel Ives said, “We believe Q2 earnings will be a big positive catalyst for the tech sector and expect tech stocks to grow another 15% for the year, adding to strong tech earnings in 1H2024. ” Factset estimates that the IT sector will see a robust revenue growth of 16.4%, with the largest contributor Nvidia Corp. NVDA. The strong power of artificial intelligence is taking advantage of its early mover advantage
Monday
- Goldman Sachs Group, Inc. GS
- BlackRock, Inc. BLK
Tuesday:
- ASML
- Johnson & Johnson, Inc. YNJ
- Bank of America Corporation BAC
- Morgan Stanley MRS
- UnitedHealth Group Incorporated UNH
- JB Hunt Transport Services, Inc. JBHT
Wednesday:
- Alcoa Corporation AA
- Discover Financial Services DFS
- Kinder Morgan, Inc. KMI
- SL Green Realty Corp. SLG
- Steel Dynamics, Inc. STLD
- United Airlines Holdings, Inc. UAL
Thursday:
- Abbott Laboratories ABT
- Alaska Air Group, Inc. ALK
- Nokia Oyj NOK
- Marsh & McLennan Companies, Inc. MMC
- DR Horton, Inc. goat
- Domino’s Pizza, Inc. DPZ
- Novartis AG NVS
- Intuitive Surgical, Inc. ISRG
- Netflix, Inc. NFLX
Friday:
- American Express Company AXP
- The Halliburton Company HAL
- Schlumberger Limited SLB
- Travelers Companies, Inc. TRV
of SPDR S&P 500 ETF Trust SPYan exchange-traded fund that tracks the performance of the S&P 500 Index, ended Friday’s session up 0.63% at $559.99, according to Benzinga Pro data.
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