Earnings Season Begins With Big Tech, Not the Banks

Forget banks—third-quarter earnings season doesn’t start until Tuesday, when Netflix and Tesla report.

Don’t expect the overall market to care too much about how the banks do. The S&P 500 financials sector, which includes banks and insurers but also Visa and Mastercard , totals 12.7% of the index’s market value. Its earnings contribution is expected to be larger, at 17.4% of third-quarter earnings, according to data from Refinitiv. But these days, the banks are less a reflection of the U.S.

The group makes up roughly 30% of the S&P 500’s market capitalization but is expected to contribute just 10% of the index’s third-quarter sales and 16% of earnings, according to Refinitiv. Hits and misses from their results will prompt outsize moves in the index. Nvidia is responsible for another 1.5 percentage point of expected growth, Amazon for 0.6 point, and Alphabet and Microsoft for 0.5 point each. With growth rates like those, how well the biggest companies on the market do could meaningfully swing overall S&P 500’s earnings growth one way or another.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Earnings Season Is Starting. What to Expect.Sales are expected to grow in the low single digits relative to of a fairly low base last year, another sign that the economy isn’t firing on all cylinders.
Source: MarketWatch - 🏆 3. / 97 Read more »

Jim Cramer says this earnings season might be 'a rough one'Cramer pointed to the consumer price index report and weak demand for the 30-year Treasury bond auction as part of an 'unforgiving backdrop' for the market.
Source: CNBC - 🏆 12. / 72 Read more »