Principal Asset Management’s Post

This week's market update dives into "Double-Digit Earnings Growth on Tap." Learn why analysts are cautiously optimistic about the upcoming earnings season, with both potential tailwinds and headwinds to consider. https://hubs.li/Q02DZ99V0 #WMC #WeeklyMarketCommentary #MarketUpdate #FinancialMarkets

In the latest #WeeklyMarketCommentary, the fourth quarter earnings season started last week with underwhelming results. Though flashy "recession over" headlines may be missing, this period remains vital for setting 2024 expectations. While 2023's gains came from valuation improvements, earnings growth must drive markets this year. These reports are key for establishing the trajectory to shape 2024. Read the full report here: https://hubs.la/Q02gLB3r0

📈 BBY's squeeze risk indicator hit 70 after a 14% earnings surge, mirroring last quarter’s move. This could signal another short squeeze or a drop in short interest. 📲 Discover our analysis of the potential outcomes: https://lnkd.in/grEhBdHv “BBY's recent earnings jump has pushed its squeeze risk indicator to critical levels again, suggesting potential short squeeze scenarios or decreased short interest. Investors should closely monitor this developing situation. Our analysis is based entirely on our Black App on Bloomberg {APPS BLACK<GO>}. • BBY rose 14% on earnings last week, similar to the move the quarter before (13.42%) • In both cases the increase in stock price moved the squeeze risk indicator to seventy, where it starts to matter • BBY is shorted 7% of float, which is causing this squeeze number to be so high, number 16th or in the 97th percentile • Last quarter, the indicator rose to 70 June 3-June 7th, followed by a decrease in short interest…” ➡️ Read on: https://lnkd.in/grEhBdHv #S3data is essential. #S3Research #ShortSqueeze #Earnings #MarketAnalysis #InvestmentStrategy

Sell-side analysts often embed excess optimism in earnings estimates, expecting improvement in the second half of each year. While downward revisions don't necessarily trigger a market sell-off, we believe Q3 estimates are too high and Q4 2024 expectations of 13.7% year-over-year growth are overly optimistic. Macro conditions need significant improvement for these numbers to be achievable, and the early signs from this Q2 earnings season make this more difficult to believe. Let us help you contextualize this and other data as you navigate the U.S. equity market. Contact us at sales@trivariateresearch.com. Adam Parker #EarningsEstimates #2HOutlook #StockMarket #InvestorInsights

After 2023 was a year in which improving valuations delivered strong gains, this year, earnings will likely have to do the heavy lifting. This week's #marketcommentary is now available! Click the link below to read more. https://hubs.ly/Q02gFdts0

Stocks have reached new all-time highs thanks to early Q3 earnings performance 📊👍 Follow along with the latest financial news updates from Jeremy Lau, CFA, CFP®, where he covers development like: 💡 The two BEST performing sectors in the market this year 📉 Likelihood a rate cut will happen in November 🎁 How consumer spending will shape retail sales this holiday season Start your Friday knowing more about your money 💸🧐 and subscribe for weekly episodes here: https://hubs.la/Q02TX_w00

The key takeaway from this week’s earnings and retail reports is that the consumer continues to power economic growth. Retail sales are slow but steady, borne out by recent financial company results and credit card data, while companies are returning to dealmaking. Meanwhile, investors are reminded that areas of technology can be cyclical. Against this backdrop, the path of least resistance for markets has been higher, though concerns remain that valuations are elevated versus historical averages. Read more on our blog: https://lnkd.in/eCVvxPVY #stocks #investing #inflation #recession #thefed #interestrates

Over last 8 calendar years, except for 2018 & 2022, Nifty delivered high double digit returns. Current year return is already 19%. Interesting to note that market has not seen any major drawdowns after 2011

📈 Exciting news from the world of finance! US stocks rallied as strong retail sales raise hopes of a ‘soft landing’. According to a report by Financial Times, this development signals positive momentum for the market. This is fantastic news for investors and the broader economy. #USstocks #FinancialTimes #InvestingOpportunity https://ift.tt/PRHxaKn

Fourth quarter earnings season kicked off last week, and markets were generally left wanting more. Read more of your Weekly Market Commentary here: https://hubs.ly/Q02gRlv50 #WeeklyMarketCommentary