Featured Market Data
Corporate Earnings Support Markets
With the first quarter corporate earnings season complete, S&P 500 companies reported a blended growth rate of 5.9%. The level was well ahead of market expectations and the strongest since the first quarter of 2022. The breadth of earnings beats was also strong, with the percentage of companies exceeding earnings growth expectations above average. However, those exceeding revenue estimates were below average. Furthermore, after excluding seven large tech companies (the “Magnificent 7”), the earnings growth rate for S&P 500 companies was -1.8% for the quarter. These softer datapoints align with somewhat softer economic data in May. Weaker retail sales and spending data contribute to worries about rising stress on lower-income consumers.
Source: FactSet
