NewEdge Capital Group’s Post

After a week of equity and bond markets being whipsawed by positioning, economic narratives, and Fed expectations, it's key to focus on fundamentals. As we near the end of 2Q24 earnings season, with 455 of the S&P 500 companies reporting, the results are solid—78% have beaten earnings estimates, and earnings growth stands at a robust 11.5%, surpassing expectations. These results offer a nuanced perspective on the U.S. economy and consumer behavior. More insights are available in the latest #WeeklyEdge article: https://lnkd.in/evqyXW_i. #NewEdgeWealth

After a week of equity and bond markets being whipsawed by positioning, economic narratives, and Fed expectations, it's key to focus on fundamentals. As we near the end of 2Q24 earnings season, with 455 of the S&P 500 companies reporting, the results are solid—78% have beaten earnings estimates, and earnings growth stands at a robust 11.5%, surpassing expectations. These results offer a nuanced perspective on the U.S. economy and consumer behavior. More insights are available in the latest #WeeklyEdge article: https://lnkd.in/enwm-sfS. #NewEdgeWealth

Earnings matter almost always ...Corporate earnings results for the final quarter of 2023 signaled continued corporate strength. Earnings growth was over 4%, compared with expectations for a 1.5% for Q4! Read more in our weekly commentary. #earnings #stockstowatch #marketcommentary #sp500 https://lnkd.in/e42XABuK

Check out this week's links on how to turn higher interest rates to your advantage and where it is cheaper to rent than buy.

First big US earnings week is done. Our earnings scorecard below gives a good overview of where the growth is, but also those companies that have surprised in either a positive or negative way. #equities

Second quarter earnings season is starting, with valuations that are stretched from historical perspective. That makes this season particularly demanding, as companies need to present results and guidance that are up to expectations. In terms of Price to Earnings, on a 12 month trailing basis, the S&P500 is now trading at 26, which is about 40% richer than the 40 year average. Having said that, the average is not telling the whole truth as 493 companies are trading at 17X earnings, with the remaining mega caps distorting valuations. This market might still have some room to go, provided that earnings can keep growing. Want to know more? join Fund@mental here https://lnkd.in/ewBZ9GK4 #iamfundamental #soyfundamental #wealthmanagement #familyoffice #financialadvisor #financialplanning #policymistake #ratecut #stagflation

As the noise around European politics settles, focus is turning to the second-quarter corporate earnings season. With both the S&P 500 and 12-month profit expectations at record highs, some strategists say firms will need a blowout quarter for the rally to scale new peaks.

Our 1Q24 US Earnings Bulletin written by Brandon Hall discusses how earnings have generally been better than expected, with growth sectors taking the charge and companies expanding margins. Continued adoption of AI in business processes could continue to support margins. Also, it's been really interesting to see investors dish an outsized punishment to companies that missed expectations relative to the reward that companies beating estimates have received... which suggests investors have been on the lookout for weakness in this environment of elevated valuations! Read more here: https://lnkd.in/dkj-i9uS #USEarnings #MarketInsights

So, without taking any single-name views, we expect the earnings season to bolster confidence in the equity market. While markets could be choppy in the near term, after a period in which investor positioning had become overextended, we believe fundamentals remain strong.