Key Takeaways

✔ 76% of S&P 500 companies beat earnings estimates
✔ Tech & telecoms lead earnings growth; autos & retail lag
✔ Stocks underperform even on earnings beats
✔ Trump's tariffs & inflation fears cloud market outlook

1. Earnings Season Recap: A Strong Quarter, But…

📊 The Q4 earnings season is nearing its close, with 76% of S&P 500 companies exceeding profit estimates—up from 74% in Q3.

🚀 Top-Performing Sectors:
✔ Telecoms
✔ Retail staples
✔ Tech hardware
✔ Semiconductors

📉 Underperforming Sectors:
❌ Discretionary retail
❌ Utilities
❌ Automotive
❌ Consumer services

💡 Despite earnings beats, few companies are raising forward guidance, leading to cautious investor sentiment.

🔗 Track Earnings Trends with FMP - Analyze historical earnings data for key stocks.

2. Why Are Stocks Underperforming?

🔻 1. Lack of Upgraded Guidance

• Companies beating estimates aren't raising future income forecasts, limiting stock momentum.
• Sectors like autos & durable goods are seeing the biggest earnings downgrades.

💰 2. Trump's Trade & Tariff Policies

• 25% tariffs on autos, semiconductors, & pharmaceuticals create uncertainty for multinational corporations.
• Analysts fear higher inflation from tariffs could pressure consumer spending.

📊 3. Economic Concerns: Inflation & Consumer Sentiment

• Recent economic data shows persistent price growth & weakening consumer confidence.
• Despite hopes for Trump's tax cuts & deregulation, inflation risks weigh on investor sentiment.

🔗 Monitor Market Sentiment with FMP - See how analysts rate companies post-earnings.

3. What's Next? Key Reports to Watch

🏢 Upcoming Earnings Reports:
🔹 Walmart (NYSE: WMT) - A key indicator of consumer spending trends.
🔹 Nvidia (NASDAQ: NVDA) - AI & semiconductor sector outlook.

💡 Investor Takeaways:

• Expect continued stock volatility as the market digests earnings, tariffs, & inflation risks.
• Companies with strong earnings & upgraded guidance will likely outperform.
• Monitor consumer trends, tech sector strength, & economic policy shifts for future direction.

🔗 Track Key Earnings Reports with FMP - Stay updated on earnings announcements.