A torrent of big-name earnings hit the stock market this week — and the majority did not live up to analysts' muted expectations. Of the S & P 500 companies that have reported so far, about 74% of companies have beaten earnings expectations . But their blended earnings growth rate, which includes the reports already out and estimates for those on the docket, is 3.4%, falling short of the 4.2% estimate. The growth rate of just the companies that have posted so far is 3.
Some investors think equity market momentum could slow if next week's earnings fail to meet expectations, particularly given the market's concentration in tech. "Earnings really do have to validate here, and it needs to be a broader range of earnings contributing because I don't think that the Mag 7 really can keep up with their expectations ...