75% Earnings Beat Estimates? Who will lead to Cheer the Market Again?
1. 75% of Most anticipate stocks that Tiger Trade tracks in January beat estimates.
Earnings matter. And even for growth stocks, valuations matter, too.
So far, about a third of S&P 500 companies have reported earnings results for 2021’s final quarter, according to data from FactSet.
Earnings are on track to rise 24.3% year-over-year for the quarter, based on actual results and estimates for companies that have yet to report, FactSet said, and revenue is poised to rise 13.9%.
Following the Chart shows 75% of Most anticipate stocks that Tiger Trade tracks in January beat estimates.But the whole market declinedso rapidly in less than a month. Nasdaq dropped 12% this month, the worst start in 50 years, Dow and S&P 500 fell 5.70% and 7.73%, respectively, also setting their worst start to the year since 2009.
2. Two Factors affect the Market the Most
It is rare for the U.S. stock market to fall so much in just one month.
“Two factors explain this difficult period for equity markets,” said Christophe Donay, chief strategist at Pictet Wealth Management. “Tensions over Russia and Ukraine have contributed perhaps a third of the correction and the rest is the Fed.”
Monetary policy concerns remained top of mind for investors. Powell on last Wednesday signaled the central bank was ready to raise rates from record lows to tackle soaring inflation. Futures markets have priced in about five quarter-point interest rate rises this year, starting in March.
Higher interest rates increase companies’ borrowing costs and lower the present value of forecast profits in investors’ models.
Whilesome upbeat big-name corporate earnings reports cheered investors.
Last week, $(Apple)$ took the lead in breaking this resonance down situation, shares of Apple, the world’s largest publicly traded company by market capitalization, rallied $11.11, or 7%, to $170.33, a day after the iPhone maker posted record revenue and profit.
3. $(Amazon)$, $(UPS)$, $(Exxon)$ are on Deck to Report Earnings
This is particularly important for the reversal of market expectations. For the coming week,Amazon, UPS, Exxon are on Deck to Report Earnings.
According to FactSet, more than a fifth of the S&P 500 and a couple of prominent names from the Dow Jones Industrial Average are expected to provide their quarterly updates during the week starting Monday.
Below is the Most Anticipated Earnings Releases Calendar for you:Inside which, $(Amazon)$, $(United Parcel Service)$, and $(Exxon Mobil Corp)$. are among the companies headlining another busy earnings week, as investors continue to digest company comments about supply-chain challenges and inflation.
Also expected to report earnings are tech giants like Google parent company$( Alphabet)$ and Facebook parent $(Meta Platforms)$, automakers $(Ford Motor)$ and$( General Motors)$, and other big names in manufacturing, pharmaceuticals, and industrials.
Currently,inflation and supply chains have been common topics on companies’ quarterly conference calls. Inflation has been a common topic so far this earnings season, with companies across various sectors saying cost presures accelerated toward the end of 2021 and expressing mixed views on how persistent the latest bout of inflation will be.
Traders said they expect more volatility as corporate earnings continue to grab headlines and investors keep a close eye on factors such as interest rates and economic data.
Best Luck to you all, Tigers.
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