Strongest Q2 earnings growth in over 2 years, broad strength in S&P 500, positive.

From Nasdaq: 2024-07-10 14:54:13

Q2 large cap earnings are expected to rise +9.3% YoY, the strongest in over 2 years, fueled by a robust economy and lower inflation. Unlike Q1, growth is not solely driven by the “Magnificent 7” tech giants. Projections show a broader strength in S&P 500 earnings growth for Q2, with +6% for the rest of the index and +27% for the Mag 7.

Despite the dominance of Mega Caps in earnings, typical patterns of downward revisions before earnings season are not as prominent this time. Historical trends of estimates being lowered then surpassed by actual earnings are not as pronounced due to steady projections. Upward revisions for Mega Caps have offset usual downward revisions for the broader S&P 500.

This lack of typical downward revisions may lead to stronger earnings for the rest of the S&P 500. This broader support could impact overall market returns positively. Investors are advised to seek advice from securities professionals and conduct their due diligence before making any investment decisions.



Read more at Nasdaq: Q2 Earnings Preview | Nasdaq