S&P 500 Earnings

MegaCap-8 Continue To Impress

Feb 6, 2024 2 min read

Through Friday’s close, the S&P 500 price index is up 4.0% ytd to a record high. The MegaCap-8 collectively has outperformed with a gain of 7.6%, also a record high (chart). Without the MegaCap-8 stocks, the S&P 500 would be up 2.5% ytd. The MegaCap-8 now accounts for a record-high 28.3% of the S&P 500’s market capitalization (chart)

Ed Yardeni

Fourth Quarter's Earnings Reporting Season Begins

Jan 9, 2024 2 min read paid

The new year is about to begin with an earnings reporting season for the last quarter of the old year. We've been optimistic on the outlook for earnings because we expected the economy to remain resilient and grow despite the Fed's aggressive tightening of monetary policy over the past two years. So we were pleased to see that S&P 500 operating earnings per share

Ed Yardeni

S&P 500 Earnings At Record High

Dec 12, 2023 2 min read paid

Yippee! S&P 500 operating earnings per share rose to a record high in Q3, for the first time since Q2-2022, and its 4.6% y/y increase was the first such gain in four quarters (chart). Forward earnings rose to another record high during the December 7 week, suggesting the same for actual earnings during Q4. The just-ended earnings recession was very mild, with three back-to-back quarters of

Ed Yardeni

S&P 500 Earnings Climbing Higher

Dec 1, 2023 2 min read

S&P 500 earnings per share are heading up according to industry analysts. We agree. There was lots of pessimism over the past year, with a few influential Wall Street strategists predicting that this year’s result could break bad, i.e., below $200. We stuck with our projections of $225 for this year and $250 for 2024, which seemed farfetched (if not delusional) late last year. But then

Ed Yardeni

Everything Is OK Except For...

Oct 24, 2023 2 min read paid

The Q3 earnings reporting season is underway and going well with Microsoft delivering a big upside earnings surprise after today's close. We still expect that S&P 500 earnings per share rose to a record high during the quarter. That's confirmed by S&P 500 forward earnings (chart). Inflation continues to moderate as confirmed by today's Richmond Fed regional business survey'

Ed Yardeni

The Forces Of Light Versus The Forces of Darkness

Oct 16, 2023 2 min read

Yin and yang. The forces of darkness appeared in the bond market while light shined in the stock market today. Bond investors would like to see weaker economic indicators to have more confidence that inflation can continue to moderate. The Citigroup Economic Surprise Index remained relatively elevated at 51.8 on Friday (chart). They would also like to see less supply at the Treasury bond auctions, but that isn'

Ed Yardeni

Market Call: Stop The World —We Want To Get Off!

Oct 15, 2023 2 min read

On December 23, 1776, Thomas Paine famously opined: "These are the times that try men's souls." He did so in an article titled, "The Crisis." On Friday, JPMorgan Chase CEO Jamie Dimon kicked off Q3's earnings season with a stern warning to investors: “Now may be the most dangerous time the world has seen in decades,” he wrote in the company’s

Ed Yardeni

Market Call: September Isn't Over Just Yet

Sep 17, 2023 2 min read

September is usually a nice month weather-wise. After the dog days of summer, the temperature starts to cool with occasional hot spells reminiscent of the summer. On the other hand, the month can be a rough one for stocks. The S&P 500 is down 1.3% mtd so far. That's not so bad. Then again, the month's worst performing sector is Information Technology, down

Ed Yardeni

The Economic Week Ahead: July 17-21

Jul 16, 2023 2 min read paid

The good news is that the Federal Open Mouth Committee is prohibited from talking publicly now until July 27. That's the day after the end of the next FOMC meeting, when it is widely expected they will hike the federal funds rate by 25bps to 5.25%-5.50%. It is also widely expected that will be "one-and-done" for Fed rate hiking for a while. We

Ed Yardeni

Both Analysts & Investors Are Optimistic

Jul 5, 2023 2 min read paid

In the stock market equation P = P/E x E, the consensus expected forward earnings of industry analysts determines earnings (E), while investors determine the forward earnings multiple (P/E) that they are willing to pay for E. Industry analysts remain optimistic on S&P 500 forward revenues which rose to another record high during the June 29 week (chart). They've also stopped lowering their consensus expectations

Ed Yardeni

Market Not Fazed By Bearish Fed and Nvidia Talk

Jun 29, 2023 2 min read paid

The stock market held up remarkably well yesterday despite Fed Chair Jerome Powell's warning that "there's more restriction coming" because the labor market remains too strong. He suggested that 25-bps rate hikes are still on the table for the next two meetings of the FOMC. Powell spoke during a monetary policy session in Sintra, Portugal, which is famous for its huge crashing ocean waves

Ed Yardeni

Keep Your Seatbelt on and Get a Neck Brace

May 5, 2023 2 min read paid

The S&P 500 rallied along with regional bank stocks today. It found support yesterday at its 50-day moving average. Shares of Western Alliance, Comerica, and Zions Bancorp were upgraded to the equivalent of a buy recommendation by analysts at JP Morgan. They said "with too many on one side of the boat, we move to the middle." Also giving the market a lift: Apple's

Ed Yardeni

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