The Market Update: A Deep Dive into Friday’s Action
On Friday, January 3rd, ’25, the market saw some interesting movements that caught the attention of investors and analysts alike. Let’s break down the key highlights from the day:
Notable Volume in Semiconductor Stocks:
– Nvidia (NASDAQ:) closed the holiday break with slightly better-than-average volume.
– The VanEck Semiconductor ETF (NASDAQ:) nearly reached its average daily volume.
JPMorgan (NYSE:) Surges:
– JPMorgan saw a 1.37% increase on Friday, accompanied by heavier-than-average volume.
Unexpected Volume Upside:
– Surprisingly, the last trading day before the official start of the new year on January 6th, 2025, saw an increase in trading volume.
Quarterly Bump Analysis:
– The forward four-quarter estimate (FFQE) experienced a bump on January 3 ’25, with the forward estimate rising to $272.67 from last week’s $263.39.
– The PE on the FFQE slipped to 21.8x from 22.7x the previous week.
– The earnings yield jumped to 4.59% from 4.41%, indicating positive growth potential.
Insights on Earnings Growth:
– The 4th quarter of ’24 earnings is set to begin in the next 10 days, with an expected S&P 500 EPS growth rate of +9.6%.
– Q4 ’24 S&P 500 EPS and revenue growth projections stand at +9.6% and +4.1%, respectively.
Sector Analysis for 2025:
– Positive revisions in expected EPS growth for 2025 are observed in the industrial and sectors.
– Sectors with consistent positive EPS revisions tend to perform better in the market.
Key Takeaways:
– Pay attention to stable or positive earnings revisions as indicators of future performance.
– Q4 ’24 earnings are projected to show strong growth initially, with potential adjustments over the following weeks.
In conclusion, understanding S&P 500 earnings trends can provide valuable insights for investors. Stay tuned for more in-depth sector analysis in the coming days.
Disclaimer: This information is for informational purposes only and should not be considered as financial advice. Past performance is not indicative of future results. Data sourced from LSEG. Thank you for reading.
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Analysis:
By breaking down the intricate details of market movements and earnings projections, this article provides valuable insights for both seasoned investors and newcomers to the financial world. The emphasis on positive earnings revisions and sector-specific analysis highlights the importance of staying informed and attentive to market trends.
The article’s clear structure, informative content, and engaging tone make it accessible to readers of all backgrounds. By focusing on key metrics and trends, readers can gain a better understanding of how market dynamics influence investment decisions and financial outcomes.
Overall, this article serves as a comprehensive guide for navigating the complexities of the financial landscape, empowering readers to make informed choices and seize opportunities in the ever-evolving market.