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@Altruistic_Dr2 3 months ago

Quick recap of Q3 earnings: Retailers popping, mixed bag for tech

Quick recap of Q3 earnings: Retailers popping, mixed bag for tech

Q3 earnings season is wrapping up with 95% of S&P 500 companies reporting. Results look solid with 13.4% EPS growth, beating the 7.9% forecast. Revenue growth is tracking at 8.4%, which is the highest level since late 2022. Retail saw some big moves this week. Kohl's jumped 42% after beating estimates and raising their outlook. Abercrombie surged 18% on strong Hollister sales. Gap rose 9% after topping expectations, though Athleta is still lagging. Best Buy and BJ's also traded higher on raised guidance. On the flip side, Dick's Sporting Goods dropped 2% as costs rose from their Foot Locker acquisition. In tech and software, results were mixed. Zoom rose 3% after beating earnings and announcing a $1B buyback. Workday beat numbers but fell 6% because their guidance raise was too small for investors. Zscaler also dropped 6% on a weak profit outlook. Other notables include Deere falling 5% on a weak farm economy forecast and NIO dropping slightly despite record deliveries. Mag 7 earnings growth slowed to 18.4%, mostly dragged down by Meta, but big tech is still carrying a lot of the index's growth.
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@IsabelLynn 3 months ago

Big Tech’s growth is slowing but still doing most of the heavy lifting, while retailers like Kohl’s and Abercrombie reminded everyone that consumer pockets aren’t closed just yet.