Q3 Earnings Season Poses Next Big Test for S&P 500: Here's How to Prepare for It
Get ready for more volatility; the next major test for the stock market is upon us.
Wall Street's third quarter earnings season unofficially begins on Friday, October 13, when notable names like JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), and UnitedHealth (NYSE:UNH) all report their latest financial results.
The following week sees high-profile companies like Tesla (NASDAQ:TSLA), Netflix (NASDAQ:NFLX), Bank of America, Goldman Sachs, Morgan Stanley, Charles Schwab (NYSE:SCHW), American Express (NYSE:AXP), Procter & Gamble, Johnson & Johnson, AT&T, American Airlines (NASDAQ:AAL), and United Airlines report earnings.
The earnings season gathers momentum in the final week of the month when the mega-cap tech companies are scheduled to deliver their Q3 updates. Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) are both due on Tuesday, October 24, followed by Meta Platforms (NASDAQ:META) on Wednesday, October 25, and Amazon (NASDAQ:AMZN) on Thursday, October 26. Apple (NASDAQ:AAPL) will be the final ‘FAAMG’ stock to report results on Thursday, November 2.
Investors are bracing for what may be another rocky reporting season amid the negative impact of several macroeconomic headwinds.
After earnings per share for the S&P 500 fell 4.1% in Q2 2023, earnings are expected to drop 0.3% in Q3 when compared to the same period last year, according to FactSet estimates.
Source: FactSet
If 0.3% is the actual decline for the quarter, it will mark the fourth consecutive quarter of year-over-year earnings declines reported by the index. However, it would be the smallest decline during this four-quarter streak.
The Communication Services sector, which includes names like Google-parent Alphabet (NASDAQ:GOOGL),
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