Mike Larson | Editor-in-Chief
The good news? Analysts are hiking earnings estimates left and right. The bad news? That’s setting the bar VERY high as we get ready to kick off the second quarter reporting season!
Check out the MoneyShow Chart of the Day. It shows how – and by how much – analysts adjusted their earnings estimates for S&P 500 Index (^SPX) companies during each quarter going back a half decade. You can see that analysts boosted their profit targets by 3.4% for this year's second quarter, the most since Q2 2021!
Source: FactSet
This isn’t “normal.” FactSet research shows that analysts usually cut estimates during each quarter – by an average of 2.7% over the past decade. If there’s one thing Wall Street likes, it’s the “under promise but over deliver” dynamic heading into earnings season. But we don’t have that today.
All in all, six of the 11 S&P sectors enjoyed target hikes during the three-month period. Energy led the way because of the Middle East war’s impact on oil and gas prices. Information technology and materials came in second and third place. On the flip side, health care suffered the biggest estimate cuts.
We’re just a few days away from a flood of Q2 reports. With expectations high, bulls better hope the early reporters deliver – or they could be in for a LONG earnings season!
With key questions swirling on AI and tech stocks, hot IPOs, Federal Reserve policy, and ongoing tensions in the Middle East, where is a trader to turn? In a recent MoneyShow + Wolf Financial Livestream, I sat down with six top experts to get YOU answers!
The episode delves into the wild trading action (globally and in the US) for “Big Tech” on the day of the conversation, plus what it suggests about the future of AI and chip stocks. It also covers market seasonality, top picks in sectors like industrials and utilities, and powerful options trading strategies for this volatile market.
Less Than 2 Weeks to Las Vegas! Do You Have YOUR Event Pass Yet?
There are less than TWO WEEKS until the 2026 MoneyShow Masters Symposium Las Vegas — and registrations are off-the-charts strong because attendees know how awesome this year’s conference will be!
Starting with our powerful Pre-Show Event on Sunday, July 19 and ending with a power-packed, four-hour investing course on Wednesday, July 22, our schedule is jam-packed. Don’t be left out! Get the trading and portfolio-building help you need by securing YOUR PASS here today…
The equity-only put-call ratios for the S&P 500 Index (^SPX) are still rising. Even though SPX recently rallied, traders were still buying puts as hedges, if not necessarily for pure speculation. These ratios will remain on their sell signals for the stock market until they roll over and begin to decline, advises Lawrence McMillan, editor of Option Strategist.
👉 TICKER: SPX
There were two substantial changes to my Market Multiple Table in July compared to June. Both were positive and helped to mostly justify the current valuations for stocks – earnings expectations went up and geopolitical concerns went down, says Tom Essaye, president of the Sevens Report.
📈❓Global ETF Survey: How Will You Invest in 2026? Join thousands of ETF investors and share your views in the industry's largest annual ETF survey. Take the short survey. (ETF Central)
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