FxWirePro: S&P 500 earnings update

So far 6 percent of the companies in S&P 500 have reported their Q3 earnings. Let’s take a look at the key takeaways,

• So far, 81 percent of the companies that reported actual results, reported better than expected earnings. Only 19 percent of the companies reported worse than estimated earnings. Average earnings growth rate so far is 2.1 percent.
• Earnings surprise percentage is at 2.5 percent, which is below the 5-year average.
• 78 percent of the companies reported higher sales than estimated. Sales are so far 0.9 percent above estimates.
• Earnings growth expected to be highest in the energy sector.
• Almost half of the companies cited Hurricane Harvey as having a negative impact. Almost 40 percent of the companies have cited currency or foreign exchange rate as having a negative impact.
• The current forward 12-month P/E ratio for the S&P 500 is at 17.9, higher than its 5-year average of 15.6 and 10-year average of 14.1
• Best performing sector has been information technology and Materials, where 100 percent of the companies reported better than expected earnings,
• The worst performers have been industrial sector, where only 57 percent.  

Better than expected earnings in 2017 have pushed all three, S&P 500, Dow Jones Industrial Average, and NASDAQ to all-time highs. S&P 500 is currently trading at 2553, while DOW is at 22871, and NASDAQ at 6605.

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