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Results season is almost over, but get ready for a big finale
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Results season is almost over, but get ready for a big finale

Key takeaways

  • More than 90% of S&P 500 company reports are available, with third-quarter earnings up 6.8% year over year.
  • Still, it will be a busy week in terms of earnings, with results expected from Walmart and other major retailers.
  • Tech giant Nvidia’s results, expected after Thursday’s close, “may dictate the near-term direction of the market,” Bank of America analysts wrote.

Results season is almost over, but a grand finale is expected this week.

More than 90% of S&P 500 companies’ reports are published, according to a Monday note from Oppenheimer, which said third-quarter profits were up 6.8% year over year, eight of the 11 sectors in the benchmark signaling rising profits. thanks to revenue growth of 5%.

These numbers are somewhat higher than FactSet’s “mixed” figure, which combines reported results with estimates of those yet to be announced; on Friday, these were 5.4% for profits and 5.5% for revenues. “The results show a strong third quarter,” Oppenheimer wrote.

Yet some of the biggest events on the calendar stay ahead. Walmart Retailers (WMT) and Lowe’s (WEAK) are expected to produce results on Tuesday, while Target (TGT) and TJX (TJX) should deliver their numbers a day later. Taken together, the results – and any updates to the companies’ outlook – could offer a new perspective on the consumer status before Black Friday.

The main event, however, could take place after the bell on Thursday, when chip giant Nvidia (NVDA) is defined report results. Tech giants have far exceeded Wall Street’s earnings growth expectations in the third quarter so far, UBS strategist Jonathan Golub noted last week.

The last of Magnificent Seven tech giants, Nvidia – one of the best-performing stocks in the S&P 500 this year – is expected to both deliver strong revenue growth and illustrate the state of continued demand for the technology that underpins artificial intelligence.

Nvidia is “the most dominant stock in the market,” Bank of America analysts wrote Sunday, saying it was responsible for a fifth of the S&P 500’s return over the past 12 months. “With the market take a break Last week, after the election rally, we believe that Nvidia’s earnings can dictate the direction of the market in the near term.