U.S. stocks have advanced since the start of the week as the third quarter earnings reporting season has gotten off to a strong start, with the big banks and other large firms surpassing analysts’ expectations.
So far, 46 S&P 500 components have reported third-quarter earnings, according to FactSet. That’s just over 9% of the 503 index components. Of these, 31 have reported a positive surprise, while 26 saw their shares rise after the report, according to FactSet data. What would it take for stocks to rally? Interviews with several market analysts and portfolio managers highlighted two key themes for investors to watch going forward: the health of the U.S. consumer, and forward guidance by companies.
“We’re interested in seeing how companies are handling higher prices. It is truly all about inflation because that’s all the Fed cares about,” he said. Guidance for 2023 is key Investors will receive an earnings report from Tesla Inc. TSLA after the bell on Wednesday. The company is expected to report quarterly revenue of more than $22 billion, according to FactSet. This would be its highest quarterly revenue ever, and higher than the $13.8 billion it reported during the third quarter of 2021.