Q3 Earnings Season: Key Companies to Watch and Market Insights

As the third-quarter earnings season accelerates, experts predict that most companies will surpass expectations due to the cautious outlooks set by analysts against the backdrop of high-interest rates and slowing demand. Market analysts from LSEG’s Refinitiv anticipate a 1.3% year-over-year (Y/Y) increase in overall Q3 earnings for S&P 500 companies, marking the first growth after three consecutive quarters of stagnant or declining profits. However, Bloomberg Intelligence analysts expect a 0.8% Y/Y dip in Q3 earnings, followed by a 6.2% rebound in Q4.

According to Refinitiv’s Tajinder Dhillon, the Industrials and Consumer Staples sectors are expected to maintain their positive Y/Y earnings growth streak. In contrast, Materials, Healthcare, and Real Estate sectors are predicted to experience a decline in Q3 earnings. The Energy sector is also likely to witness weaker earnings due to more challenging Y/Y comparisons.

This week, several prominent companies are set to release their earnings reports, including Tesla, AT&T, Netflix, Kinder Morgan, and Philip Morris. Johnson & Johnson and Bank of America have already reported Q3 results that exceeded estimates.
In other news, the Biden administration and the Venezuelan government have agreed to a deal that would ease sanctions on Venezuela’s oil industry in exchange for an open, internationally monitored presidential election next year. Oil prices have stabilized on hopes that U.S. sanctions will ease.

In the ongoing landmark antitrust trial against Google, a government witness testified that Google’s search deals account for approximately half of all U.S.-based search queries. MIT professor Michael Whinston, hired by the Department of Justice, emphasized the significance of default settings in Google’s deals, which he claims block rivals like Microsoft and DuckDuckGo from up to 50% of all U.S.-based searches.

Lastly, Taylor Swift’s concert film, “Taylor Swift: The Eras Tour,” dominated the weekend box office, grossing $92.8 million domestically and $123.5 million worldwide. The film’s success is particularly notable as Swift bypassed traditional distributors to deal directly with AMC Entertainment.

Today’s Economic Calendar

8:00 Fed’s Williams’ Speech
8:30 Retail Sales
9:15 Industrial Production
9:20 Fed’s Bowman: “Responsible Innovation in Money and Payments”
10:00 Business Inventories
10:00 Housing Market Index
10:45 Fed’s Barkin’s Speech
5:00 PM Fed’s Kashkari: “The Intersection of the Federal Reserve in the Health Care Sector”

Stocks to watch: This week will see earnings reports from big names including Tesla (TSLA), AT&T (T), Netflix (NFLX), Kinder Morgan (KMI), and Philip Morris (PM). Johnson & Johnson (JNJ) reported Q3 results that topped estimates, while Bank of America (BAC) also posted an earnings beat. Goldman Sachs (GS) and United Airlines (UAL) are scheduled to report later today.

by Steve Macalbry of Bestgrowthstocks.com

Disclaimer: The author is not a licensed financial advisor and the content provided is for informational purposes only. Always consult with a certified financial advisor before making investment decisions. The author does not hold any positions in the stocks mentioned in this article.

Best Growth Stocks

Learn More →