This week saw a flurry of big-name company gains in the stock market, most of which failed to meet analysts’ modest expectations. About 74% of S&P 500 companies have exceeded earnings estimates to date. However, the overall profit growth rate, which includes previously released reports and on-paper estimates, was 3.4%, lower than the 4.2% estimate. According to FactSet, the growth rate for the companies listed so far is 3.1%. Other than electric car maker Tesla, tobacco company Philip Morris and cloud-based IT service management company ServiceNow, most of the 110 or so companies that reported results this week had a particularly tough time. Of the 20 major companies that received the report, 13 companies ended their stock prices in the red. This week’s results have been generally disappointing, especially as investors focus on mega-cap technology and semiconductor companies scheduled to report next week, putting an even greater burden on the remaining companies that have yet to report quarterly results. It becomes. . Some investors believe the stock market’s momentum could slow if next week’s results fall short of expectations, especially given the market’s concentration in the tech sector. Here’s a CNBC Pro earnings guide that shows you what you can expect from returns on ‘Magnificent Seven’ stocks. “We need to really look at revenue here, and broader revenue needs to contribute because I don’t think Mag 7 can really keep up with their expectations…They have a big revenue hurdle. And we’re already seeing that on a growth basis, which is cool,” said Philip Colmer, managing partner and global strategist at MRB Partners. “The sweet spot here is that the big tech companies can deliver positive results, or at least meet some expectations, because they’re heavily weighted,” Colmar said. The sector’s strong performance will also be a boon for the market, he added, noting that corporate earnings are still in the early stages and reports so far have been decent. “We need a wide range of other companies to lift or maintain that optimism. That’s why we’re in a shopping period here in the market,” Colmar said. Tech stocks buoyed the market Friday ahead of impending earnings releases, pushing the Nasdaq Composite Index to a record high. The S&P 500 and Dow Jones Industrial Average ended the week lower.
