Impressive Start to Q3 Earnings Season: S&P 500 Companies Surpass Expectations
The third-quarter earnings season has kicked off with a bang, as a whopping 76% of the first 58 S&P 500 companies to report have outperformed analyst expectations. This impressive figure not only trumps the usual first-week average of 68%, but also slightly edges out last quarter’s 73% mark, as per data from Bank of America.
Cleveland-Cliffs took the lead in Monday’s gains, skyrocketing by 16% after reporting an adjusted EBITDA of $143 million, which comfortably surpassed the projected $127.9 million. This robust earnings momentum is contributing to a buoyant market sentiment, further fueled by the anticipation of another quarter-point Federal Reserve rate cut at the end of October.
The upcoming week is set to be a whirlwind of earnings reports, with heavyweights like Netflix, Coca-Cola, General Motors, and Intel on the docket. Monday saw the Dow Jones Industrial Average climb 515.97 points (+1.12%), while the S&P 500 advanced 71.12 points (+1.07%). This reflects investor optimism about corporate profitability, despite the looming shadow of trade tensions and regional banking worries.
Source: CNBC