S&P 500 Companies’ Profit Growth Highest Since 2010

S&P 500 Companies’ Profit Growth Highest Since 2010

S&P 500 Companies’ Profit Growth Highest Since 2010


  • Still, investors are somewhat cautious with US Congressional midterm elections Tuesday.

US earnings growth for S&P 500 companies in Q-3 is on track to be the highest since Y 2010, eclipsing the strong results from earlier this year, according to the data.

Stronger-than-expected earnings have pushed the estimate for Q-3 growth to 27.4%, based on results from 381 of the S&P 500 companies and estimates for the rest.

The growth estimate is well above the 21.6% growth for the Quarter forecast by analysts on 1 October, and it would surpass Q-1’s 26.6% growth and Q-2’s 24.9% growth, based on the data.

The last time Quarterly profit growth was higher was in Q-4 of Y 2010, when it was at 37.2%.

Strong profit growth this year has been driven in part by the sweeping Trump Tax overhaul approved by Congress late last year. But investors have been concerned about rising tariff and other costs for companies that could result in a bigger step down in profit growth next year than analysts are expecting.

In China

President Xi reiterated his plans to continue to open China’s markets to the world in a Keynote speech at the China International Import Expo in Shanghai.

Monday, the major US stock market indexes finished at: DJIA +190.87 at 25461.70, NAS Comp -28.14 at 7329.05, S&P 500 +15.25 at 2738.45

Volume: Trade on the NYSE came in at 933-M/shares exchanged

  • NAS Comp +6.2% YTD
  • DJIA +3.0% YTD
  • S&P 500 +2.4% YTD
  • Russell 2000 +0.8% YTD

HeffX-LTN’s overall outlook for the US major stock market indexes is Neutral to Bullish in here.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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