The early Q3 earnings reports paint a relatively stable and reassuring picture of overall economy and particularly of consumer spending. We see this not only in the earnings reports from banks like JPMorgan (JPM Quick QuoteJPM - Free Report) and others, but also from consumer-facing operators like Pepsi (PEP Quick QuotePEP - Free Report) , Delta Airlines (DAL Quick QuoteDAL - Free Report) and others.

In fact, the resilience of the U.S. economy has come as a pleasant surprise to the market, particularly given how well it has held up in the face of the Fed’s extraordinary tightening cycle.

We continue to believe that the U.S. economy’s solid fundamentals will allow it optimally navigate the coming period of ‘higher-for-longer’ interest rates. This constructive view of the economy is getting confirmed by trends in earnings estimate revisions, which continue to remain stable and appear to be starting to increase for a number of key sectors.

In terms of the Q3 earnings season scorecard, we now have results from 78 S&P 500 members or 15.6% of the index’s total membership. Total earnings for these 78 index members are up +1.6% from the same period last year on +5.7% higher revenues, with 80.8% beating EPS estimates and 62.8% beating revenue estimates.

This is a modestly better showing for this group companies relative to other recent periods, which is a notable positive given how Q3 estimates had barely budged ahead of the start of this reporting cycle.

For more details about the Q3 earnings season and the evolving revisions picture, please check out our weekly Earnings Trends report here >>>>> The Q3 Earnings Season Kicks Off Positively