Industrials Take Center Stage as Earnings Season Prepares for Peak Weeks

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Dow Jones Industrial Average,Boeing Co,General Motors Company

Stocks Analysis by Christine Short covering: S&P 500, Dow Jones Industrial Average, Boeing Co, General Motors Company. Read Christine Short's latest article on Investing.com

Q3 S&P 500 EPS growth is expected to come in at 3.4%, the fifth consecutive quarter of growth, yet the weakest quarter in over a year.Peak weeks for Q3 season run from October 28 - November 15took a bit of a breather to start the week as investors waited for the next round of corporate earnings results to come in.) surpassed Wall Street expectations and raised full-year guidance, causing investors to take the stock about 10% higher after the report. More good news came in fromclimbed to 4.

The first of the Magnificent 7 names to report, Tesla, came in better than expected on the bottom line but slightly missed top-line estimates. Those numbers were good enough for investors who took the stock 10% higher after the report. Similarly, IBM reported results that surpassed Wall Street estimates on EPS, but not on revenues, investors were not so forgiving of the tech giant. Shares of IBM were down 5% after the report.

With nearly 20% of the S&P 500 reported thus far, the YoY growth rate stands at 3.4%, the fifth consecutive quarter of growth, yet the lowest growth rate in over a year. Despite better-than-expected reports from banks, the blended growth rate fell as a result of analysts lowering EPS estimates significantly for companies that have yet to report. Three sectors in particular have seen the most drastic cuts, Industrials, Energy, and Health Care.

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