Earnings Season

The Digital Revolution Marches On As Nvidia Beats

Feb 26, 2025 3 min read paid

Artificial intelligence, and all the capital spending that comes along with it, is here to stay. Nvidia reported today that its sales last quarter rose 78% y/y to $39.3 billion, and management’s revenue guidance of $43.0 billion (+/- 2%) for the current quarter was above the consensus estimate of $41.8 billion. Moreover, the company laid out plans to get its new Blackwell chips to market

Ed Yardeni
Eric Wallerstein

Animal Spirits Boosting Capex Plans

Feb 4, 2025 2 min read paid

Google-parent Alphabet’s stock sank 7% after the closing bell today following its Q1 earnings report. That was partly because the company announced much higher 2025 capital expenditures than analysts anticipated. After spending $14.28 billion on CapEx in Q4-2024 (above the consensus estimate of $13.26 billion), Alphabet will spend $75 billion on CapEx during 2025, said CEO Sundar Pichai, mostly on building out its AI-related businesses. That'

Ed Yardeni
Eric Wallerstein

MARKET CALL: Momentum Is Hard To Stop

Jan 20, 2025 3 min read paid

The bond and stock markets were closed today for MLK Day. When they reopen tomorrow, we will all be able to assess their initial reactions to Trump 2.0 following today's Inauguration ceremony. The major stock market futures indexes were up all day. Bitcoin soared in the morning, but turned down in the afternoon. Gold and copper prices fell slightly. The dollar sold off after The Wall Street

Ed Yardeni

Another Record Earnings Reporting Season

Dec 9, 2024 2 min read paid

Chocolate and chips were on today's stock market menu. Hershey's stock price soared on a report of another Mondelez takeover attempt. However, the market was weighed down by Nvidia shares, which fell after China opened an investigation over possible violation of antimonopoly law. There was some profit-taking in Tesla during the day following the huge run-up since Election Day. But the stock closed slightly higher. Meanwhile,

Ed Yardeni
Eric Wallerstein

An Earnings-Led Meltup For Stocks?

Nov 19, 2024 3 min read paid

We are often asked if the current bull market in stocks has turned into a meltup that could soon be followed by a meltdown. That's a risk we currently give a 25% subjective probability. Relatively high stock valuations are the main worry for many investors (chart). However, our bullish outlook for strong productivity-led economic growth means that earnings rather than valuations can lead the market higher. Coupled with

Ed Yardeni
Eric Wallerstein

Big Bank Earnings Are Rip Roaring

Oct 16, 2024 3 min read paid

The third year of the current bull market in stocks got off to a good start this week. It's likely that the Q3 earnings reporting season will be better than expected as suggested by the results reported yesterday and today by some of the major companies in the S&P 500 Financials sector. On Sunday, we wrote that industry analysts expected S&P 500 earnings to

Ed Yardeni
Eric Wallerstein

The Economic Week Ahead: August 26-30

Aug 25, 2024 3 min read

This week will include the first clues on the economy's performance in August. We're expecting to see confirmation of ongoing labor market strength in the month's consumer confidence survey (Tue) and initial unemployment claims (Thu). Some of August's improvement should be a bounce back from July's weather-depressed economic activity, which may be reflected in July's personal income release

Ed Yardeni
Eric Wallerstein

S&P 500 EPS At Record High During Q2

Aug 12, 2024 3 min read paid

Now that the S&P 500 companies are more than 90% through the Q2 earnings reporting season, let's do a quick check up on how Corporate America is faring. In short, there's no sign of an imminent recession as S&P 500 earnings rose to a record high during Q2. Here's more happy news to serve as a tonic to the geopolitical

Ed Yardeni
Eric Wallerstein

An Earnings-Driven Bull Market

Jul 22, 2024 3 min read paid

Yesterday, we suggested that the stock market selloff since the July 16 record high in the S&P 500 might not last very long. So we were pleased by today's broad rally in the S&P 500 (1.1%), Nasdaq (1.6%), Russell 2000 (1.7%), and the MAGS (2.4%). We expect that a solid print in Q2's real GDP on Thursday and

Ed Yardeni
Eric Wallerstein

Banking on Looser Regulation

Jul 9, 2024 3 min read paid

Bank stocks popped today after Reuters reported that the Fed is considering relaxing a regulation, i.e., the GSIB Surcharge. It requires big banks to hold additional capital due to the systemic risk they pose to the global financial system. Tweaking the GSIB surcharge would free up big banks to lend more. The S&P 500 Financials stock price index had already been doing well. It is up 37.

Ed Yardeni
Eric Wallerstein

Market Call: Sharp U-Turn

May 12, 2024 2 min read paid

The S&P 500 bottomed most recently on April 19 at 4967.23, rising to 5222.68 on Friday. That's very close to its record high of 5254.35 on March 28. That's a very sharp U-turn! It's getting closer to our 5400 end-of-year target and it is only May. Stock prices rallied as the Q1 earnings reporting season delivered better-than-expected results (chart)

Ed Yardeni

Weakening Global Economic Growth Is A Mixed Bowl Of Nuts

Nov 8, 2023 2 min read paid

We are still aiming for 4600 on the S&P 500 before the end of this year. That's only a 5.0% increase from today's close. Heck, the S&P 500 was up 5.9% just last week. However, that was clearly a combination of a short-covering rally in both the bond and stock markets. It was also a buying panic in the bond

Ed Yardeni

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