FNArena’s Weekly Insights – August 12 2024
In this week’s Weekly Insights:
-August Results: Early Beginnings
-FNArena Talks
By Rudi Filapek-Vandyck, Editor
August Results: Early Beginnings
Share price movements are not the most reliable indicator thus far in July and August.
Contrary to what investors might assume, the Q2 corporate earnings season in the US is not a big failure.
Share price weakness over there is more plausibly explained through Gen.Ai scepticism and macro-inspired investor angst. Forced selling because hedge funds and others got burned through the yen carry trade hasn’t helped either.
In flagrant contrast with weak sentiment in the first two weeks of August, believe it or not, corporate performances in the US have mostly surprised to the upside, including trading updates and forward-guidances delivered. On data crunching undertaken by S&P Global Market Intelligence, Q2 EPS growth for the S&P500 has improved to 12.03% from 8.17% over the past four weeks.
That’s one big jump in defiance of widespread concerns about too high valuations carried by too high expectations.
