Strong earnings reported by tech companies, increasing capex spending, positive outlook for S&P 500.

From Zacks Investment Research: 2025-02-05 20:16:18

Total earnings for the 245 S&P 500 companies reporting are up +11.6% from last year, with 80.0% beating EPS estimates and 66.9% beating revenue estimates. Tech sector Q4 results show earnings up +23.2% from last year, with 88.9% beating EPS estimates. Alphabet, Microsoft, and Meta Platforms continue aggressive AI infrastructure spending, with Alphabet planning +47% capex increase. Despite growth, Microsoft had cloud business issues affecting stock price. The Tech sector is expected to drive growth in 2024 Q4 with earnings up +23.3% from last year. Overall, S&P 500 earnings are expected to grow in the next two years.



Read more at Zacks Investment Research: Mag 7 Members Report Strong Earnings, Double Down on CapEx – February 5, 2025