The Rise of the "Magnificent Seven" in Q3 2024 Earnings
In the fast-paced world of finance, certain companies stand out for their ability to drive market growth and influence investor sentiment. The "Magnificent Seven" tech giants – Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla – are once again set to take center stage in the upcoming Q3 2024 earnings season. Here’s what you need to know:
1. Projected Earnings Growth
- The "Magnificent Seven" are projected to report an impressive 18.1% year-over-year earnings increase.
- In contrast, the remaining 493 S&P 500 companies are only anticipating minimal growth of just 0.1%.
2. Key Contributors
- NVIDIA and Alphabet are expected to be among the top contributors to earnings growth.
- NVIDIA’s surge in demand for AI-related chips is driving its earnings growth.
3. Market Outlook
- Analysts predict a shift over the next few quarters, with both the "Magnificent Seven" and the rest of the S&P 500 expected to achieve double-digit earnings growth.
- This convergence could signal broadening market strength and reduced dependence on mega-cap tech companies.
4. Potential Risks
- Political risks, such as geopolitical tensions and trade wars, could impact the growth of the "Magnificent Seven."
- Tariffs and regulations on semiconductor chips pose a threat to future earnings growth.
5. Earnings Dates and Expectations
- Tesla, Facebook/Meta Platforms, Microsoft, Alphabet/Google, Amazon, Apple, and NVIDIA all have upcoming earnings reports with varying EPS expectations.
Nasdaq 100 Technical Analysis
- The Nasdaq 100 is rising within an ascending wedge formation, a potentially bearish setup.
- A break below the lower trend line could signal a move towards the 200-day MA near $19K, while strong earnings could push the index to record highs.
In conclusion, the performance of the "Magnificent Seven" in the upcoming earnings season will have a significant impact on market trends and investor sentiment. Stay tuned for updates on these key players and their contributions to the financial landscape.
Source: FactSet, TradingView, StoneX