Big Tech’s Profit Machine Is Propping Up S&P 500 Earnings

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(Bloomberg) -- With the list of stock-market worries growing seemingly by the day, investors looking to earnings season for a dose of good news are hanging...

-- With the list of stock-market worries growing seemingly by the day, investors looking to earnings season for a dose of good news are hanging their hopes on a familiar group: Big Tech.Stanford Suspends Teacher as Mideast Conflict Roils Campus

The S&P 500 as a whole isn’t looking nearly as strong. The index’s profits are expected to be roughly flat, but they’d face a drop of around 5% without those five behemoths. After robust second-quarter earnings, “we need to see more of the same in the third-quarter results,” said Mike Bailey, director of research at FBB Capital Partners. Given their big weighting, “you can bet that the rest of the market will play follow the leader as big tech earnings unfold this quarter.”Investors have good reason to be optimistic. In the past century, the S&P 500 has rallied during reporting season about two-thirds of the time, data compiled by Bloomberg show.

Expensive share prices put pressure on companies to deliver strong earnings, according to Kim Forrest, founder and chief investment officer at Bokeh Capital Partners. The JPMorgan CEO laid out a series of risks, pointing to concerns with the Fed, rising debt, and geopolitical conflicts.I was all set for my trip, or so I thought. That's when my friend told me to always keep a bread clip when traveling. The reason is quite clever.Given the market circumstances, these two TSX bank stocks can be worthwhile additions to your self-directed portfolio. The post 2 Discounted Bank Stocks to Buy in October 2023 appeared first on The Motley Fool Canada.

 

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