Tech megacaps to lead earnings season, UBS says
Nasdaq advances ~0.8%, S&P 500 modestly higher, Dow turns red
Comm Svcs leads S&P 500 sector gainers; Energy weakest group
Euro STOXX 600 ends down 0.2%
Dollar dips; bitcoin falls >3%; crude up; gold gains >1%
U.S. 10-Year Treasury yield slides to ~4.28%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
TECH MEGACAPS TO LEAD EARNINGS SEASON, UBS SAYS
The S&P 500 Information Technology sector .SPLRCT soared to another fresh all time high on Friday, bringing its 2024 gains to over 33%.
With the next earnings season kicking off on July 12, UBS equity analysts expect the sector's earnings to continue leading the S&P 500.
The broker expects S&P 500 earnings per share (EPS) to grow 7.8%, with EPS for the tech sector predicted to rise 23.3%.
In fact, excluding technology stocks, UBS forecasts S&P 500 EPS growth of just 2.5%, highlighting the inequality between tech sector gains and the rest of the market.
Technology shares have been riding the artificial intelligence investment wave, and look set to continue their recent rally, but it remains to be seen whether gains can be sustained.
According to UBS, EPS for the six big tech giants combined is expected to grow by 31.7% in the second quarter, while earnings for other tech firms will grow just 9.5%, UBS says.
Non-tech companies will have a mere 2.5% EPS growth in the same quarter, UBS forecasts, pointing to continued disparity between tech stocks and the rest of the market.
Chipmaker Nvidia NVDA.O is projected to top the earnings growth chart, outpacing its rivals with 134% gains. Similarly, chipmaker, Micron Technology MU.O, is seen posting over 135% EPS growth.
UBS says the outlook for materials, however, is more grim, with UBS forecasting earnings for the sector to fall 8.9%. The world's largest lithium producer Albemarle's ALB.N earnings per share are forecast to slump 91.6% in the second quarter.
Analysts at Commonwealth Financial Network point to the risks associated with projected higher valuations of tech companies, though they forcast double digit price growth in the S&P 500 for the second half of 2024 in their mid-year outlook.
"For the (S&P 500's) climb to extend into 2025, smaller-cap and international stocks will need to help carry the load."
(Nikhil Sharma)
*****
FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:
INDIVIDUAL INVESTORS TAP THE CASH WELL - CLICK HERE
JOBS REPORT AS BAKED ALASKA: HOT ON THE OUTSIDE, COOL AT ITS CORE - CLICK HERE
U.S. STOCKS SUBDUED EARLY AS THEY SORT OUT PAYROLL DATA - CLICK HERE
FRENCH ELECTIONS: A FISCAL BALLET INFLUENCING MARKET RHYTHMS? - CLICK HERE
U.S. STOCK FUTURES DIGEST LATEST JOBS DATA - CLICK HERE
NEXT PIT STOP FOR NEARSHORING - CENTRAL AND EASTERN EUROPE - CLICK HERE
NEXT UP: PAYROLLS - CLICK HERE
UK LABOUR'S WIN: A BURDEN FOR DIVERSIFIED FINANCIALS AND INSURANCE, A RELIEF FOR UTILITIES - CLICK HERE
THE RISE OF THE MODERATES, EYES ON FRANCE - CLICK HERE
EUROPEAN STOCKS HIGHER, BRITAIN'S MID-CAPS HIGHEST SINCE APRIL 2022 - CLICK HERE
EUROPEAN STOCK FUTURES HIGHER; ELECTIONS, PAYROLLS IN FOCUS - CLICK HERE
STARMER'S STEADY START - CLICK HERE
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
</body></html>Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
