Expect Small Earnings Growth From the Market’s Biggest Movers
While everyone will be focused on earnings from Alphabet ($GOOGL), Microsoft ($MSFT) and Amazon ($AMZN) this week, a Wall Street Journal analysis shows they aren’t expected to contribute enough to third-quarter S&P 500 earnings growth to get their own callout in terms of needle-movers. That’s quite a change from the second-quarter season, when their “other income” was one of the biggest sources of upside surprise.
In contrast, Nvidia ($NVDA) and Micron Technology ($MU) alone account for about a third of the nearly 30% year-over-year growth in S&P 500 third-quarter earnings. That figure blends actual results from companies that have reported with estimates for those that haven’t. Just 10 companies account for nearly two-thirds of that growth. Along with Nvidia and Micron, they are Broadcom ($AVGO), Exxon Mobil ($XOM), EchoStar ($SATS), Sandisk ($SNDK), Marathon Petroleum ($MPC), Meta Platforms ($META), Chevron ($CVX) and Valero Energy ($VLO).
