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FRONT OF MIND | ARTICLE – 2 Min

Graph of the Week - An encouraging US earnings season

Daniel Morris
By DANIEL MORRIS 09.02.2024

In this article:

    The latest news on US company earnings has been broadly positive.   

    • Two-thirds of the companies in the S&P500 equity index have reported their results for the fourth quarter of 2023. The figures have been encouraging so far, which has contributed to the gains in US stock markets so far this year.
    • Earnings by those companies that have reported were 4.4% higher than for the same period a year ago. While this may not seem like much, it is actually 2.8% higher than what analysts had forecast, hence the positive ‘surprise’.
    • Most sectors have reported higher profits versus a year ago with the notable exception of the financials sector. Though many energy companies have so far reported profit gains, once all the companies in the sector have released their results, the final figure will likely show a drop in profits as a result of lower oil prices compared to 2022. 

    Disclaimer

    Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

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