TECH - Tesla Netflix Intel Take Center Stage In Pivotal Q4 Earnings Week As S&P 500 Eyes Breaking New Highs | Benzinga
The earnings season is gaining momentum as the tech reporting season kicks off this week. With the S&P 500 Index reaching a new high on Friday, investors are keenly watching earnings reports to sustain the market’s upward momentum.
Mixed Q4 Earnings So Far
About 10% of the S&P 500 companies have reported their financial results so far, according to data provided by Factset.
Regional banks like Comerica, Inc. (NYSE:CMA), Fifth Third Bancorp. (NASDAQ:FITB), and Regions Financial Corp. (NYSE:RF) reported sharp earnings declines due to higher interest rates and increased FDIC fees.
Larger peers such as Goldman Sachs Group, Inc. (NYSE:GS) posted strong results, while Morgan Stanley (NYSE:MS) saw earnings decline despite beating revenue expectations. Financial services company Discover Financial Services (NYSE:DFS) faced a decline on an earnings miss.
According to Factset, the fourth-quarter earnings season has had a weak start, with the percentage of S&P 500 companies reporting positive earnings surprises below average, primarily due to the subpar performance of financial sector companies. The current forecast for the blended Q4 earnings decline is 1.7%, steeper than the 0.3% drop reported last week.
On the revenue front, 62% of S&P 500 companies have reported revenue upside, slightly below the five-year and ten-year averages.
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