Boo! Did I scare you? Earnings season is in full swing on Wall Street this week but we have not been spooked. In fact, there have been far more treats than tricks handed out.
Nearly 300 companies have reported third-quarter earnings representing about 60% of the S&P 500. Of these companies, 74% have exceeded industry analysts’ expectations for earnings and 58% outpaced revenue estimates! These treats have brought delight to investors and suggest that overall earnings may prove better than originally expected. That is key because earnings drive stock prices.
Among earnings reports this week were a few tech bellwethers; notably, Amazon and Apple. Amazon reported strong revenues this week but lower than expected profits due to increased spending as the firm has been investing heavily to get orders delivered faster. Maybe you have been getting visits from the Amazon deliveryman on Sundays like I have been! Apple reported higher than expected earnings, however the stock fell a bit due to weaker than expected iPhone projections. Historically Apple has been conservative with its guidance. The iPhone 7 launch has benefited from Samsung’s widespread recall due to faulty batteries. While we are busy celebrating Halloween these tech titans are already gearing up the holiday selling season.
There are plenty of ghosts and goblins in the markets but that is expected – especially as we grow closer to Election Day. Don’t worry we are prepared and don’t get spooked. Happy Halloween!
By: Meredith Rosen
