From Nasdaq: 2024-05-03 17:56:00

Apple and Amazon have released their Q1 results, with Nvidia’s awaited. Despite disappointing growth from Tesla and Apple, the ‘Magnificent 7’ group showed impressive top- and bottom-line growth. The group’s earnings are expected to be up +49% from last year. Tech sector earnings are expected to grow +28.2% in Q1.

Market reaction to Tesla and Apple’s results has been positive. Tesla’s Q1 earnings were down -53.4% and Apple’s growth rates were negative, but better than expected. The Mag 7 group’s blockbuster buyback announcement impacted market sentiment. The group is expected to bring in 21.2% of the S&P 500 index’s total earnings in 2024.

The Mag 7 companies account for 29.9% of the S&P 500 index’s total market cap. Total earnings for the group are expected to be up +49% in Q1. Beyond the Mag 7, total Q1 earnings for the Tech sector are projected to increase by +28.2%. The current leaders are expected to maintain market leadership given their growth profile.

Earnings season continues, with over 1200 companies reporting results. 400 S&P 500 members have reported, with earnings up +4.4% on +4.2% higher revenues. Notable reports this week include Disney, Uber, and Shopify. The tech and energy sectors are driving aggregate growth, with total S&P 500 earnings expected to increase by +8.9% in 2024.

Bitcoin has been the highest returning asset class, outperforming in presidential election years. Zacks predicts another surge in the months to come. The tech and energy sectors play opposite roles in the overall earnings picture. Total S&P 500 earnings are expected to be up +8.9% in 2024, with a positive outlook for the future.



Read more at Nasdaq:: Mag 7 Leadership Reflects Earnings Power