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@Altruistic_Dr2 10 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 10 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.