All articles tagged with #sectors
The S&P 500 reached a new all-time high, but only three sectors - energy, technology, and industrials - saw gains since the index's last peak in early 2022. Big Tech, including Nvidia and Microsoft, played a significant role in the index's recent record close, with their performance contributing to the overall gains. The U.S. stock market was rising on Monday, with the S&P 500's sectors trading mixed, led by industrials and technology.
Analysts expect S&P 500 earnings growth to improve in the first half of 2024, with projected year-over-year growth rates of 6.7% for Q1 and 10.5% for Q2. The Communication Services, Consumer Discretionary, and Information Technology sectors are expected to drive the increase in earnings growth. Companies like NVIDIA, Amazon.com, Meta Platforms, and Alphabet are predicted to be the largest contributors to earnings growth for the S&P 500 in Q1 2024, while Merck, NVIDIA, and Meta Platforms are expected to lead in Q2 2024. Excluding these companies would lower the estimated earnings growth rates for both quarters.
Despite a stronger-than-normal earnings season with a majority of stocks beating expectations, the stock market is not rewarding positive results as much as usual, while weaker results are being punished even more. High-profile winning sectors like tech and communication services are experiencing declines even after beating earnings estimates. However, the energy sector is being more amenable to rewarding earnings performance, with major oil companies seeing their stock prices hold up despite plunging profits. Companies in the energy sector are focusing on boosting shareholder value through dividends, share buybacks, and cost measures.