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Early Warning Signs Materialize: Global Week Ahead
Read MoreHide Full Article
Key Takeaways
Investors Look Toward New Q3 Reports This Week
Delayed CPI Report Due Out Friday Morning
Where Are the Warning Signs for Economic Slowdown?
What’s happening across this Global Week Ahead?
The U.S. government shutdown extends into another week
Q3 earnings season is in full swing
U.S./China trade tensions are tense, and
There's plenty of fresh macro data to mull over
Japan's parliament meanwhile may vote on a new prime minister; and Bolivia holds a key election.
Next are Reuters’ five world market themes, re-ordered for equity traders—
(1) U.S. Q3 Earnings Get Rolling; Friday, SEPT U.S. CPI Gets Released
U.S. corporate earnings rev up, with Tesla (TSLA - Free Report) and Netflix (NFLX - Free Report) , while the week ends with a delayed U.S. inflation release.
After major banks kicked off Q3 earnings, the coming week will see reports from an array of industries, including consumer companies Procter & Gamble (PG - Free Report) and Coca-Cola (KO - Free Report) , aerospace and defense giant RTX (RTX - Free Report) and tech stalwart IBM (IBM - Free Report) .
Investors have also been confronting a government data blackout due to the federal shutdown that began on October 1st.
While key data including the monthly employment report have been delayed, the government plans to publish September CPI numbers on Friday morning, allowing the Social Security Administration to meet deadlines related to payment of benefits.
The CPI release comes just ahead of the Federal Reserve's October 28-29 meeting, when the central bank is widely expected to cut rates by a quarter percentage point.
(2) Early Warning Signs of Slowdown Materialize; Lots of PMIs This Week
It has been six months since U.S. President Donald Trump unveiled his "Liberation Day" tariffs.
There are trade deals in place and investors and companies have some certainty.
Or, at least, they did until recently.
Tensions are flaring again between Washington and Beijing, prompting tit-for-tat fees on cargo ships and ports, a tightening on two-way supplies of key tech-sector materials and parts and a general heating up of rhetoric.
Europe hasn't yet seen evidence of the big spending that national governments, led by Germany, promised earlier this year. China is slowing too.
The upcoming surveys of business activity for Germany, France, the U.K., the U.S. and Eurozone, among other regions, in October could start to reflect some of that renewed angst.
(3) A Big Vote Happens for Japan’s Next Prime Minister
Japanese markets await an expected parliamentary vote next week that may spur another leg up in a record stock run.
The blue-chip Nikkei hit all-time highs after Sanae Takaichi, a devotee of the "Abenomics" stimulus policies of the late Shinzo Abe, won a ruling Liberal Democratic Party election on October 4th.
That's normally a shoo-in to become the prime minister, but the LDP is weakened.
A diet vote to install her as premier has been delayed after Takaichi failed to heal a rift with a long-time coalition partner and rival parties tried to team up to form their own government.
The Nikkei hit a speed bump, and a volatility measure of the index surged to the highest since April.
Now the Japan Innovation Party has emerged as a possible savior after its leader pledged support for Takaichi, if the two sides can agree on policy.
(4) U.K. Consumer Price Inflation (CPI) Data Lands; Bonds & FX Markets Care
U.K. inflation data next week could be pivotal for Britain's gilt markets, sterling and finance minister Rachel Reeves' ability to limit unpopular tax hikes and spending cuts in her November 26 budget.
With Britain's fiscal hole widening because of surging debt payments, Wednesday's September consumer prices report could fuel rate cut bets and offer Reeves some relief if the annualized print comes below the Bank of England's 4.0% forecast.
But a higher-than-expected increase could keep the BoE cautious and Britain's finances looking precarious, in a threat to sterling's recent strong run against the dollar.
Gilt markets are exhibiting optimism so far, with U.K. borrowing costs falling to over two-month lows as traders priced a 90% probability of a quarter-point rate cut by February.
(5) On Sunday, Bolivia Votes for a New President - with an Economy in Trouble
Bolivia's presidential election runoff vote on Sunday was an historic moment, formally ending almost two decades of near-continuous socialist rule.
Centrist Rodrigo Paz, advocating a gradualist approach from socialist policies (and fully aware of the country's long history of violent unrest at times of economic pain) won the runoff versus right-wing former President Jorge "Tuto" Quiroga, who had a narrow lead in late polls. Tuto was an advocate of the kind of chainsaw-style reforms Javier Milei adopted in neighboring Argentina, including potentially a debt writeoff.
The debt market vultures were watching closely. The economy is in deep disarray, with inflation running at nearly 25%, fuel shortages rife and the country's foreign exchange reserves now barely covering two months of basic imports.
Zacks #1 Rank (STRONG BUY) Stocks
Is there an “AI” bubble? Let’s explore that narrative this week.
To do that, we can focus on three major Zacks #1 Ranked large-cap U.S. Tech companies.
(1) Robinhood Markets (HOOD - Free Report) : This is a $134 a share stock, with a market cap of $119.2B. It is found in the Zacks Financial-Investment industry. There is a Zacks Value score of F, a Zacks Growth score of B, and a Zacks Momentum score of A.
Image Source: Zacks Investment Research
Headquartered in Menlo Park, CA, Robinhood is a financial services company.
It offers trading services in crypto, stocks, options, exchange-traded funds (ETFs), cash management, margin and securities lending, and Robinhood Gold. The company aims to democratize finance through its commission-free trading model, which was launched in 2013, with no account minimums. The company serves in the United States, the United Kingdom and selected European Union (EU) jurisdictions through its apps and subsidiaries.
The company's main subsidiaries include Robinhood Financial LLC. (introducing broker-dealer), Robinhood Securities, LLC (clearing broker-dealer), Robinhood Crypto, LLC (allows crypto dealings and is responsible for custody of users’ cryptocurrencies), Robinhood Credit, Inc. (offers credit cards) and Robinhood Money, LLC (offers spending card and spending account).
The company went public in July 2021 with an initial public offering of 52.4 million shares, raising roughly $2 billion.
Since then, it has expanded its services and user base through new features and offerings and international expansion.
In June 2025, Robinhood acquired global cryptocurrency exchange Bitstamp Ltd.
In May 2025, Robinhood acquired WonderFi to expand its presence in Canada’s digital asset market
In February 2025, Robinhood acquired TradePMR to expand into the registered investment advisers (RIA) custody market
In 2024, Robinhood acquired Pluto Capital Inc. to enhance its wealth management business and MNA Holdco LLC & its subsidiary Marex North America LLC and its licenses
In 2023, the company acquired Chartr Ltd and X1 Inc. (renamed Robinhood Credit)
In 2021, Robinhood took over A Say Inc. and its subsidiaries
Further, the company launched Robinhood Wallet in 2023, its first international offering to global clients. In 2023, it launched brokerage services in the United Kingdom on a rolling basis and the Robinhood Crypto App for all eligible customers in selected jurisdictions in the EU.
As of June 30, 2025, Robinhood had 26.5 million funded customers, $278.6 billion in total platform assets, 3.5 million in Gold subscribers, and $13.8 billion in net deposits.
(2) Crowdstrike (CRWD - Free Report) : This is a $489 a share stock, with a market cap of $122.7B. It is found in the Zacks Security industry. There is a Zacks Value score of F, a Zacks Growth score of D, and a Zacks Momentum score of B.
Image Source: Zacks Investment Research
Founded in 2011, Sunnyvale, CA-based CrowdStrike is a leader in next-generation endpoint protection, threat intelligence, and cyberattack response services.
CrowdStrike’s co-founders George Kurtz and Dmitri Alperovitch were inspired by the shortcomings in the previous-generation security software technologies. They managed to turn the previous-generation adversaries through leveraging the network effects of crowdsourced data from its customer base applied to modern technologies, including AI, cloud computing, and graph databases to detect threats and stop breaches.
In 2011, CrowdStrike built its main cloud native platform leveraging AI — Falcon platform — the industry’s first multi-tenant, cloud native, intelligent security solution that protects workloads across on-premise, cloud-based, and virtualized environments running on a variety of endpoints such as desktops, laptops, servers, virtual machines, and IoT devices.
CrowdStrike’s cloud-based Falcon platform currently provides 29 cloud modules via a SaaS subscription model that is separated under three categories — Endpoint Security, Security & IT Operations and Threat Intelligence.
As a result of its wide-scale offerings, CrowdStrike is one shop for almost all types of security solutions.
This provides a competitive advantage over other rivals that have mostly limited types of solutions, such as Proofpoint, which is specialized in identity theft protection, FireEye and F5 Networks, which offer cloud-based proxy, firewall, sandboxing and advanced threat protection.
CrowdStrike operates in an industry which is characterized by the existence of a large number of patents. Here, hundreds of issued and pending patents for the company’s cloud platform provide a competitive advantage.
The company has adopted a channel-centric sales model that is supported by its direct sales team. The approach helps facilitate client acquisition process, improving account coordination, and developing sales and overall market.
In fiscal 2025, CrowdStrike’s revenues soared +29% year over year to approximately $3.95 billion.
(3) Analog Devices (ADI - Free Report) : This is a $238 a share stock, with a market cap of $117.2B. It is found in the Zacks Semiconductor – Analog and Mixed industry. There is a Zacks Value score of D, a Zacks Growth score of D, and a Zacks Momentum score of C.
Image Source: Zacks Investment Research
Analog Devices, Inc. is headquartered in Norwood, Massachusetts. The company is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal and digital signal processing (DSP) integrated circuits.
The product line is composed of amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DS Ps; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors.
The company also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products; voltage references; interface products such as isolators, translators and transceivers; wireless products and converters; broadband products including amplifiers, CODECs, chipsets, splitters.
Analog Devices has manufacturing facilities in the United States, Ireland, and Southeast Asia. The company also uses outside foundries, mainly Taiwan Semiconductor Manufacturing Company for front-end processing and third-party subcontractors for back-end operations.
Notably, the company generated $9.43 billion revenues in fiscal 2024.
The company generates revenues from four organized end-markets – Industrial, Consumer, Communications and Automotive:
In Industrial market (46% of fiscal 2024 revenues), Analog Devices caters to the needs of industrial and instrumentation, defense/aerospace, energy management and healthcare sectors
In Communications market (11%), Analog Devices offers products required in internet infrastructures, broadband and wireless applications
For Automotive market (30%), the company offers products that are utilized in infotainment, electrification, autonomous, ADAS and safety applications
Further, the company takes care of the requirements in feature-rich, high-performance products such as portable devices and prosumer video/audio equipment in the Consumer market (13%)
The company caters to the growing demand for its products in these afore mentioned markets via its strong sales channels. We note that it has direct sales offices, sales representatives and distributors in more than 50 countries.
Key Global Macro
Fresh CPI macro prints are a macro focus, everywhere.
On Monday, the Bank of Canada Business Outlook survey is out. Canada has a 7.1% household unemployment rate in hand. U.S. states near Canada are being pressured by that nation’s macro struggle.
On Tuesday, the U.K.’s CPI for September comes out. I see a prior +3.8% y/y reading for the broad CPI and +3.6% y/y for the core CPI. That looks high and uncomfortable. The U.S. and U.K. share a sticky CPI problem, it appears.
On Wednesday, Japan’s national CPI for September comes out. The broad reading is high at +2.7% y/y, and the core CPI reading is high at +3.3% y/y.
On Thursday, U.S. existing home sales come out for September. The prior reading was tracking 4M.
U.S. new home sales for September come out too. The prior reading here was 0.8M, up +20.5% in August, due to homebuilder price cuts and rate buydowns, put out at the end of summer.
On Friday, the preliminary Euro Area HCOB manufacturing PMI for October comes out. I see a 49.8 prior print. That suggests a static growth scenario playing out there.
The U.S. CPI for September may come out. In August, the U.S. marked a +2.9% y/y broad CPI and a +3.1% y/y core CPI. The FOMC’s statutory goal is +2.0% y/y.
Finally, the U of Michigan consumer sentiment index for OCT comes out. A low 55 was the prior print.
Conclusion
On Oct. 17th, 2025 Zacks Research Director Sheraz Mian put this Q3 outlook together.
His key points:
(1) We are off to a great start in the Q3 earnings season.
Not only are most companies easily beating estimates, but the tone and substance of guidance and management commentary are also mostly reassuring and favorable.
This should help sustain the positive estimate revisions trend that has been in place in recent months.
(2) For the 58 S&P 500 members that have reported Q3 results, total earnings are up +15.4% from the same period last year on +8.0% higher revenue, with 86.2% beating EPS estimates and 79.3% beating revenue estimates.
The proportion of these 58 index members beating both EPS and revenue estimates is 74.1%.
(3) The Q3 earnings and revenue growth pace for these 58 index members represents a notable improvement over what we saw from this same group of companies in the first half of the year.
The proportion of these 58 index members beating EPS and revenue estimates is tracking significantly above the historical averages for this same group of companies.
(4) For the Finance sector, we now have Q3 results from 47.7% of the sector’s total market capitalization in the S&P 500 index.
Total earnings for these Finance sector companies are up +20.4% from the same period last year on +10.9% higher revenues, with 96.2% beating EPS estimates and 88.5% beating revenue estimates.
Happy trading!
John Blank, PhD. Zacks Chief Equity Strategist and Economist
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Early Warning Signs Materialize: Global Week Ahead
Key Takeaways
What’s happening across this Global Week Ahead?
Japan's parliament meanwhile may vote on a new prime minister; and Bolivia holds a key election.
Next are Reuters’ five world market themes, re-ordered for equity traders—
(1) U.S. Q3 Earnings Get Rolling; Friday, SEPT U.S. CPI Gets Released
U.S. corporate earnings rev up, with Tesla (TSLA - Free Report) and Netflix (NFLX - Free Report) , while the week ends with a delayed U.S. inflation release.
After major banks kicked off Q3 earnings, the coming week will see reports from an array of industries, including consumer companies Procter & Gamble (PG - Free Report) and Coca-Cola (KO - Free Report) , aerospace and defense giant RTX (RTX - Free Report) and tech stalwart IBM (IBM - Free Report) .
Investors have also been confronting a government data blackout due to the federal shutdown that began on October 1st.
While key data including the monthly employment report have been delayed, the government plans to publish September CPI numbers on Friday morning, allowing the Social Security Administration to meet deadlines related to payment of benefits.
The CPI release comes just ahead of the Federal Reserve's October 28-29 meeting, when the central bank is widely expected to cut rates by a quarter percentage point.
(2) Early Warning Signs of Slowdown Materialize; Lots of PMIs This Week
It has been six months since U.S. President Donald Trump unveiled his "Liberation Day" tariffs.
There are trade deals in place and investors and companies have some certainty.
Or, at least, they did until recently.
Tensions are flaring again between Washington and Beijing, prompting tit-for-tat fees on cargo ships and ports, a tightening on two-way supplies of key tech-sector materials and parts and a general heating up of rhetoric.
Europe hasn't yet seen evidence of the big spending that national governments, led by Germany, promised earlier this year. China is slowing too.
The upcoming surveys of business activity for Germany, France, the U.K., the U.S. and Eurozone, among other regions, in October could start to reflect some of that renewed angst.
(3) A Big Vote Happens for Japan’s Next Prime Minister
Japanese markets await an expected parliamentary vote next week that may spur another leg up in a record stock run.
The blue-chip Nikkei hit all-time highs after Sanae Takaichi, a devotee of the "Abenomics" stimulus policies of the late Shinzo Abe, won a ruling Liberal Democratic Party election on October 4th.
That's normally a shoo-in to become the prime minister, but the LDP is weakened.
A diet vote to install her as premier has been delayed after Takaichi failed to heal a rift with a long-time coalition partner and rival parties tried to team up to form their own government.
The Nikkei hit a speed bump, and a volatility measure of the index surged to the highest since April.
Now the Japan Innovation Party has emerged as a possible savior after its leader pledged support for Takaichi, if the two sides can agree on policy.
(4) U.K. Consumer Price Inflation (CPI) Data Lands; Bonds & FX Markets Care
U.K. inflation data next week could be pivotal for Britain's gilt markets, sterling and finance minister Rachel Reeves' ability to limit unpopular tax hikes and spending cuts in her November 26 budget.
With Britain's fiscal hole widening because of surging debt payments, Wednesday's September consumer prices report could fuel rate cut bets and offer Reeves some relief if the annualized print comes below the Bank of England's 4.0% forecast.
But a higher-than-expected increase could keep the BoE cautious and Britain's finances looking precarious, in a threat to sterling's recent strong run against the dollar.
Gilt markets are exhibiting optimism so far, with U.K. borrowing costs falling to over two-month lows as traders priced a 90% probability of a quarter-point rate cut by February.
(5) On Sunday, Bolivia Votes for a New President - with an Economy in Trouble
Bolivia's presidential election runoff vote on Sunday was an historic moment, formally ending almost two decades of near-continuous socialist rule.
Centrist Rodrigo Paz, advocating a gradualist approach from socialist policies (and fully aware of the country's long history of violent unrest at times of economic pain) won the runoff versus right-wing former President Jorge "Tuto" Quiroga, who had a narrow lead in late polls. Tuto was an advocate of the kind of chainsaw-style reforms Javier Milei adopted in neighboring Argentina, including potentially a debt writeoff.
The debt market vultures were watching closely. The economy is in deep disarray, with inflation running at nearly 25%, fuel shortages rife and the country's foreign exchange reserves now barely covering two months of basic imports.
Zacks #1 Rank (STRONG BUY) Stocks
Is there an “AI” bubble? Let’s explore that narrative this week.
To do that, we can focus on three major Zacks #1 Ranked large-cap U.S. Tech companies.
(1) Robinhood Markets (HOOD - Free Report) : This is a $134 a share stock, with a market cap of $119.2B. It is found in the Zacks Financial-Investment industry. There is a Zacks Value score of F, a Zacks Growth score of B, and a Zacks Momentum score of A.
Image Source: Zacks Investment Research
Headquartered in Menlo Park, CA, Robinhood is a financial services company.
It offers trading services in crypto, stocks, options, exchange-traded funds (ETFs), cash management, margin and securities lending, and Robinhood Gold. The company aims to democratize finance through its commission-free trading model, which was launched in 2013, with no account minimums. The company serves in the United States, the United Kingdom and selected European Union (EU) jurisdictions through its apps and subsidiaries.
The company's main subsidiaries include Robinhood Financial LLC. (introducing broker-dealer), Robinhood Securities, LLC (clearing broker-dealer), Robinhood Crypto, LLC (allows crypto dealings and is responsible for custody of users’ cryptocurrencies), Robinhood Credit, Inc. (offers credit cards) and Robinhood Money, LLC (offers spending card and spending account).
The company went public in July 2021 with an initial public offering of 52.4 million shares, raising roughly $2 billion.
Since then, it has expanded its services and user base through new features and offerings and international expansion.
Further, the company launched Robinhood Wallet in 2023, its first international offering to global clients. In 2023, it launched brokerage services in the United Kingdom on a rolling basis and the Robinhood Crypto App for all eligible customers in selected jurisdictions in the EU.
As of June 30, 2025, Robinhood had 26.5 million funded customers, $278.6 billion in total platform assets, 3.5 million in Gold subscribers, and $13.8 billion in net deposits.
(2) Crowdstrike (CRWD - Free Report) : This is a $489 a share stock, with a market cap of $122.7B. It is found in the Zacks Security industry. There is a Zacks Value score of F, a Zacks Growth score of D, and a Zacks Momentum score of B.
Image Source: Zacks Investment Research
Founded in 2011, Sunnyvale, CA-based CrowdStrike is a leader in next-generation endpoint protection, threat intelligence, and cyberattack response services.
CrowdStrike’s co-founders George Kurtz and Dmitri Alperovitch were inspired by the shortcomings in the previous-generation security software technologies. They managed to turn the previous-generation adversaries through leveraging the network effects of crowdsourced data from its customer base applied to modern technologies, including AI, cloud computing, and graph databases to detect threats and stop breaches.
In 2011, CrowdStrike built its main cloud native platform leveraging AI — Falcon platform — the industry’s first multi-tenant, cloud native, intelligent security solution that protects workloads across on-premise, cloud-based, and virtualized environments running on a variety of endpoints such as desktops, laptops, servers, virtual machines, and IoT devices.
CrowdStrike’s cloud-based Falcon platform currently provides 29 cloud modules via a SaaS subscription model that is separated under three categories — Endpoint Security, Security & IT Operations and Threat Intelligence.
As a result of its wide-scale offerings, CrowdStrike is one shop for almost all types of security solutions.
This provides a competitive advantage over other rivals that have mostly limited types of solutions, such as Proofpoint, which is specialized in identity theft protection, FireEye and F5 Networks, which offer cloud-based proxy, firewall, sandboxing and advanced threat protection.
CrowdStrike operates in an industry which is characterized by the existence of a large number of patents. Here, hundreds of issued and pending patents for the company’s cloud platform provide a competitive advantage.
The company has adopted a channel-centric sales model that is supported by its direct sales team. The approach helps facilitate client acquisition process, improving account coordination, and developing sales and overall market.
In fiscal 2025, CrowdStrike’s revenues soared +29% year over year to approximately $3.95 billion.
(3) Analog Devices (ADI - Free Report) : This is a $238 a share stock, with a market cap of $117.2B. It is found in the Zacks Semiconductor – Analog and Mixed industry. There is a Zacks Value score of D, a Zacks Growth score of D, and a Zacks Momentum score of C.
Image Source: Zacks Investment Research
Analog Devices, Inc. is headquartered in Norwood, Massachusetts. The company is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal and digital signal processing (DSP) integrated circuits.
The product line is composed of amplifiers and comparators; analog to digital converters; digital to analog converters; video encoders and decoders; embedded processing products and DS Ps; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors.
The company also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products; voltage references; interface products such as isolators, translators and transceivers; wireless products and converters; broadband products including amplifiers, CODECs, chipsets, splitters.
Analog Devices has manufacturing facilities in the United States, Ireland, and Southeast Asia. The company also uses outside foundries, mainly Taiwan Semiconductor Manufacturing Company for front-end processing and third-party subcontractors for back-end operations.
Notably, the company generated $9.43 billion revenues in fiscal 2024.
The company generates revenues from four organized end-markets – Industrial, Consumer, Communications and Automotive:
The company caters to the growing demand for its products in these afore mentioned markets via its strong sales channels. We note that it has direct sales offices, sales representatives and distributors in more than 50 countries.
Key Global Macro
Fresh CPI macro prints are a macro focus, everywhere.
On Monday, the Bank of Canada Business Outlook survey is out. Canada has a 7.1% household unemployment rate in hand. U.S. states near Canada are being pressured by that nation’s macro struggle.
On Tuesday, the U.K.’s CPI for September comes out. I see a prior +3.8% y/y reading for the broad CPI and +3.6% y/y for the core CPI. That looks high and uncomfortable. The U.S. and U.K. share a sticky CPI problem, it appears.
On Wednesday, Japan’s national CPI for September comes out. The broad reading is high at +2.7% y/y, and the core CPI reading is high at +3.3% y/y.
On Thursday, U.S. existing home sales come out for September. The prior reading was tracking 4M.
U.S. new home sales for September come out too. The prior reading here was 0.8M, up +20.5% in August, due to homebuilder price cuts and rate buydowns, put out at the end of summer.
On Friday, the preliminary Euro Area HCOB manufacturing PMI for October comes out. I see a 49.8 prior print. That suggests a static growth scenario playing out there.
The U.S. CPI for September may come out. In August, the U.S. marked a +2.9% y/y broad CPI and a +3.1% y/y core CPI. The FOMC’s statutory goal is +2.0% y/y.
Finally, the U of Michigan consumer sentiment index for OCT comes out. A low 55 was the prior print.
Conclusion
On Oct. 17th, 2025 Zacks Research Director Sheraz Mian put this Q3 outlook together.
His key points:
(1) We are off to a great start in the Q3 earnings season.
Not only are most companies easily beating estimates, but the tone and substance of guidance and management commentary are also mostly reassuring and favorable.
This should help sustain the positive estimate revisions trend that has been in place in recent months.
(2) For the 58 S&P 500 members that have reported Q3 results, total earnings are up +15.4% from the same period last year on +8.0% higher revenue, with 86.2% beating EPS estimates and 79.3% beating revenue estimates.
The proportion of these 58 index members beating both EPS and revenue estimates is 74.1%.
(3) The Q3 earnings and revenue growth pace for these 58 index members represents a notable improvement over what we saw from this same group of companies in the first half of the year.
The proportion of these 58 index members beating EPS and revenue estimates is tracking significantly above the historical averages for this same group of companies.
(4) For the Finance sector, we now have Q3 results from 47.7% of the sector’s total market capitalization in the S&P 500 index.
Total earnings for these Finance sector companies are up +20.4% from the same period last year on +10.9% higher revenues, with 96.2% beating EPS estimates and 88.5% beating revenue estimates.
Happy trading!
John Blank, PhD.
Zacks Chief Equity Strategist and Economist