Market Quote: U.S Earnings Mostly Beating Expectations, Sustainability Stocks Stabilizing
Author: The editor's desk
October 23, 2024
A mid-week analysis of what’s happening in global financial markets from the perspective of AGF’s investment management team.
November Reign
More than 20% of S&P 500 Index companies had reported third-quarter earnings as of Wednesday morning, with over 70% beating consensus earnings per share (EPS) estimates by nearly 6% on average, according to UBS. Last week saw strong earnings “beats” and stock price reactions from the U.S. Financials sector, while this week has provided more mixed results from various U.S. Industrial and Consumer names. Next week represents the main earnings event with many of the mega-cap technology companies reporting results.
November is historically a very strong month for U.S equity markets, but we expect volatility to continue into year-end as investors navigate the rest of earnings season, the upcoming U.S. election, ongoing geopolitical conflicts and uncertainty on the timing of future interest rate cuts. The U.S. Federal Reserve began its rate-cutting cycle in September and inflation continues to fall, however, bond yields have risen over the past month as economic indicators and corporate earnings remain resilient.
Sustained Momentum
Sustainable investing themes have experienced deep recessionary fundamentals over the past 18 months, but recent interest rate cuts in the U.S. and elsewhere around the world may be giving new life to this beaten-down segment of the global equity market.
While the U.S. presidential election may increase volatility in the short term, medium-term secular drivers—such as the U.S. Inflation Reduction Act, climate disasters, and artificial intelligence’s (AI) demand for energy—make us more optimistic about sustainable investing heading into 2025.
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Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.
AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.
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