Research Summary
- The report provides a preview of the Q2 and Q3 2023 earnings season, highlighting the busy schedule of earnings releases for various companies.
- It includes a recap of the previous week’s earnings, focusing on the scorecards of the S&P 500 and the Nasdaq-100.
- The blended earnings growth for SPX is reported at -4.99%, while NDX shows a growth of +15.02%.
- Actual earnings growth is presented as SPX -6.40% (prior -6.16%) and NDX +12.75% (prior +13.14%).
- Despite high positive earnings surprises at around 80% for both indices, the reaction to earnings remains muted, with negative price movements outweighing positive ones.
- The report indicates a marginal decline in actual earnings growth for both indices compared to the previous week and suggests that the current earnings season may see the worst decline since the pandemic drop.
Actionable Insights
- Monitor Earnings Releases: Investors should closely watch the upcoming earnings releases, as they may have significant impacts on the market.
- Analyze Market Reactions: The muted reaction to positive earnings surprises may indicate underlying market sentiment and should be analyzed for investment decisions.
- Consider Historical Trends: The decline in earnings growth, compared to previous periods, may signal potential risks or opportunities in specific sectors or the broader market.
