With not much on the economic calendar today, the buzz
is adding to the overall positive momentum in the market. The IPO
will get priced after the close today and the stock will make its
public debut Thursday morning. It will be interesting to see if
this hot IPO will fare better than how the
) IPO was handled some time back.
Twitter mania aside, another go-go stock,
), will also be in the spotlight today after the electric car
maker's results after the close on Tuesday failed to satisfy
elevated investor expectations. The disappointment is putting the
stock on track to give back some of its more than 400%
year-to-date gain in today's session. On this morning's earnings
docket, the outlook from
) was weak while the same from
) was positive, while
) will report after the close.
Including results from Humana, Ralph Lauren, Chesapeake and
others this morning, we now have Q3 results from 423 S&P 500
members or 84.6% of the index's total membership. Total earnings
for these 423 companies are up +4.4%, with 66.2% coming ahead of
consensus earnings expectations. Total revenues are up +3% and
51.3% are beating top-line expectations. The composite earnings
growth rate for Q3, combining the results for the 423 companies
that have reported with the 77 still to come, is +4.2%, up from
+3.7% in Q2.
Unlike in Q2 when the Finance sector was solely responsible for
keeping aggregate earnings growth in the positive column, the Q3
gains are fairly broadly distributed. Total earnings growth
outside of Finance at this late stage in the reporting cycle
remains at +3.2% compared to a decline of -3.3% at comparable
stage in Q2 and the 4-quarter average of -1%. Aggregate growth
stays positive after we exclude the strong gains from big
) and others.
With total earnings at an all-time record already, this better
distributed growth performance helps improve the earnings picture
and modestly blunt the impact of persistent negative guidance
from management teams.
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