SOXQ - Earnings Unlikely To Spoil Stock Rally

2024-02-05 11:50:00 ET

Summary

• We don’t see Q4 earnings challenging upbeat risk appetite even as we see 2024 earnings growth below the consensus. We're overweight U.S. stocks overall.
• U.S. stocks hit an all-time high last week as mostly solid tech earnings offset some disappointments. U.S. 10-year yields jumped on robust January jobs data.
• We follow this week’s global PMIs to gauge how firms are adapting to still-high rates. China credit growth is in focus to gauge the impact of policy stimulus.

Transcript

Last week, major tech firms beat lofty earnings expectations.

We don’t see [Q4] earnings results spoiling upbeat market sentiment.

1) Tech gains

A handful of mega-cap tech firms are making an outsized contribution to U.S. earnings....

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