My Investing Muse

Factset has published a good overview as of 31 Aug 2023 for the S&P500 Q2/2023 earnings season: Here are some of the highlights: Inflation was mentioned 288 times and remained a topic of concern for the market. Should interest rates continue to rise, we can expect funds to move towards the bond market and out of the high-growth stocks. Out of the 11 business sectors, Consumer Discretionary has gained the most at 54%. 45 S&P500 companies have provided positive EPS guidance for Q2. It is the most positive since Q3/2021 and represents more companies having a more bullish outlook. Personally, this is good news. With less than 10% of the businesses, this can be limited to certain sectors with the rest of the sectors being neutral, less bullish or even bearish towards the market outlook. 79% of the companies have actual EPS above estimated EPS. This can be read as good news, with more companies beating the market expectations. However, beating EPS can be done if the estimate is lowe...

S&P 500 Earnings - Historical Chart This interactive chart compares the S&P 500 index with its trailing twelve-month earnings per share (EPS) value. Whenever there is a crossover of value, we can expect a recession (area shaded in grey). This is an observation and there can always be exceptions. Based on the chart below, it has rightly “signalled” the recessions of 2000, 2008 and 2020. However, this is a typical lagging indicator as this crossover typically happens after the recession. This is due to the lagging updates from the quarterly earnings. For 2022, the charts look to point to another potential crossover. Thus, let us continue to be prepared for worsening market conditions. Chart  of S&P 500 and its earnings The following is a chart of the S&P 500 earnings forecast extracted from Gurufocus. S&P 500 earnings forecast from  GuruFocus From the  estimates , the earnings are expected to be in the red from Q4/2022 to Q3/2023. It will be followed by ...

3 of the Big 4 banks (JP Morgan, Citibank & Wells Fargo) have released their earnings with BlackRock before the opening of 14 Apr 2023 market. Citibank Citibanks beats both revenue and EPS estimates. EPS 2.19 versus estimate 1.7 Revenue 21.4B versus estimate 20.05B JP Morgan JPMORGAN 1Q ADJ. EARNINGS PER SHARE $4.10, EST. $3.41 JPMORGAN 1Q REV. $38.34B, EST. $36.19B Wells Fargo & Co Earnings per share: $1.23 per share GAAP versus 90 cents a year ago and $1.13 expected. Revenue: $20.73 billion versus $20.08 billion expected. The bank’s shares were up more than 3% in premarket trading after the earnings report. Wells Fargo increased its net income by more than 30% to nearly $5 billion in the first quarter from a year ago. The bank's net interest income increased 45% on the back of soaring interest rates. BlackRock BlackRock 2023Q1 earnings are out: • Revenue met estimate at $4.24B • Adj EPS beat estimate at $7.93 • AUM exceeded estimate at $9.09T • Net inflows missed estimate...