Let's talk about earnings!
What Are the Q3 Numbers Telling Us?
Concerns have been that inflation would eventually take a toll on corporate profits. With over half of the S&P 500 Index companies reporting Q3 earnings, the results have been optimistic. The average increase in earnings over expectations is 3.76%.
The positive surprises are consistent across sectors. This data has largely helped prop up equity prices in October.
Not conveyed in this data is the poor guidance provided by tech giants Amazon, Google, Microsoft, and Facebook. Embedded in their updates this week were bleak expectations for revenue in Q4.
Source: Helios Quantitative Research, Bloomberg