January is in the books, and markets are still waiting on a big rebound in the dealmaking space. Investors rooting for increased M&A and a flurry of IPOs will have to be patient as Q1 tracks with continued low counts on both fronts.
The Magnificent 7 kicked off fourth quarter reporting in a similar fashion to the Q3 season. Tesla once again missed expectations when they reported on Wednesday, on both the top and bottom-line this time (vs. only missing on revenues in Q3), yet investors seemed unbothered.
The Q4 earnings season continued on a positive note after big banks and other financials struck a bullish tone in the first two weeks of reporting.
Big US banks marked the beginning of the Q4 earnings season when they released results last week, and overall they were positive. Because of their position opening up the earnings season they tend to set the tone for things to come.
Something unusual came down the chimney late last year. During the holidays and the preceding weeks, there were a slew of splits among US ETFs – the most in the past four years, according to Wall Street Horizon’s data.
The same themes that drove sharp 2024 returns among the Magnificent 7 stocks appear to be very much alive in the new year.
Uncertainty ahead of the election may have resulted in lower corporate capex and M&A trends, but hope abounds that 2025 could bring about renewed animal spirits.
The Q3 earnings season is coming to a close in its usual fashion, with a word from retailers. With 93% of S&P 500 companies reporting at this point, YoY S&P 500 EPS growth has settled around 5.4%, while revenue growth increased 5.5% for the quarter.
After falling to their lowest level last year (in Wall Street Horizon's eight years of data), the total number of announced global corporate buybacks has been improving throughout 2024.