The stock market has recorded its longest falling streak since early this year amid big techs selling off despite bond yield slides. In any case, the equities earning calendar fell for four days as the S&P 500 extended its drop to more than 4% from an all-time high. This post unravels the recent stock-earnings rise return and its trading impacts.
Investors are becoming increasingly skeptical about how further the stock earning rise could go in the near term. In general, they are optimistic about the strengthening economy after a 10% stock rally throughout the first 2024 quarter. The 10% stock rally marked the most substantial gain since 2019.
This stock earnings rise comes despite lingering challenges like inflation frustration, Federal Reserve hawkishness, rising interest rates, and geopolitical tensions. In the meantime, the Fed’s Beige Book survey indicates that the US economy has slightly grown since late February, based on regional business contacts.
Although global equities face tactical challenges, the ongoing stock earning rise will likely continue throughout 2024. Positive AI developments have enabled productivity and stock market earnings surge by reducing labor costs. What are some big techs that have recorded a stock earnings rise return?
Tesla Inc. (TSLA)
Tesla showcases remarkable results, with a stock earnings rise that surpasses its revenue estimates. In other words, the company boasts positive earnings whispers that drive optimism and resonate with investors despite market fluctuations. Tesla remains a priority in the forecast for stock market earnings surge due to the EV’s revolution.
United Airlines Holdings
The company recorded a higher profit than expected to inject optimism into the airline industry. United Airlines Holdings showcases a positive outlook, raising investor sentiments over stock earnings today. Investors will monitor its stock earnings this week as the earnings calendar indicates a stock market earning surge moving forward.
ASML Holding NV
Nonetheless, ASML Holding stock earnings dropped by over 6% after missing its first-quarter target. The downturn was due to challenges in the semiconductor sector. Hence, the risks underscored ASML’s stock earnings calendar performance as investors lost confidence in its market sentiments.
The current lower ERP indicates a likely boost in corporate profits. Yet, technical trends for equity markets remain supportive despite the recent pullback. The Fed Chair Jerome Powell signaled that stock earnings this week will wait longer for the anticipated rate cuts after a high inflation reading.
Market Sentiment
Positioning and sentiments have not yet indicated any warnings, but investors have extended their stance on equities. Morgan Stanley strategists say investors are more confident that big techs will meet expectations through 2024. Overall, they expect profits to drop in the first quarter and rise in the second.
Industry Analysis
Big techs showcase a solid stock earnings rise, but some sectors grapple with uncertainties. For instance, the semiconductor niche is grappling with inflation and political uncertainties, which has reduced production.
The Nasdaq 100 slid by more than 1%, while the S&P 500 dropped to about 5,020. Meanwhile, the 2-year yields slid below 5% after Powell commented on rate cuts. The 20-year bond recorded a $13 billion sale as investors rose in the Treasury market. Above all, the US corporate stock earnings rise will likely proceed throughout 2024.
