The Q3 earnings season is off to a strong start, with 86.2% of S&P 500 companies beating EPS estimates and 79.3% beating revenue estimates. Total earnings for these companies are up +15.4% YoY on +8.0% higher revenue. The Finance sector is leading the way, with total earnings up +20.4% and revenue up +10.9%. American Express, JPMorgan, Citigroup, and Wells Fargo all exceeded expectations and provided positive economic outlooks.

The positive trend in earnings and revenue growth for the Finance sector is significant, with 96.2% of companies beating EPS estimates and 88.5% beating revenue estimates. The overall earnings picture for the S&P 500 index is showing strong growth, with expectations for Q3 earnings to increase by +6.5% on +6.4% revenue gains.

The favorable revisions trend is supported by the strong Q3 results from banks, which are helping sustain market rebound from April lows. Consumer spending and credit demand are stable, with signs of improving deal pipelines and lower delinquencies. The capital markets business is showing positive results, indicating a favorable regulatory and monetary policy backdrop.

Read more at NASDAQ.: Q3 Earnings Season Starts Positively: A Closer Look