Author: Zac Martin, Senior Investment Analyst
Week Ending July 24th - Off and On
Weekly returns for 7/13 – 7/17.
Last week’s return (7/20 - 7/24).
Oil markets continued to climb as the Iran conflict continued to heat up, however, last night the US announced a pause on the strikes causing oil markets to fall and equities to rally. The US 10-year treasury increased to its highest point in several years, climbing to 4.72% before moving slightly lower.
While macro news has been on the lighter side, earnings continue to heat up. Through the end of last week, the S&P 500 blended earnings growth rate for Q2 increased to 37.9% year-on-year from 24.8%, according to FactSet. If this number is how the actual quarter lines up it will be the strongest growth rate since Q3 2021. However, this positive increase is primarily due to GOOGL’s earnings, which accounted for 92% of the net dollar-level increase in earnings for the S&P 500. Additionally, a large contributor to alphabet’s EPS growth has been from investments growing in value, more than $92Bln. Therefore, backing out Alphabet’s contribution, S&P earnings grew 25.9% - which is still a robust growth rate.
The Week Ahead:
- FOMC meeting (7/29)
- GDP Q2 first preliminary (7/30)
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