Want to hear the least surprising news ever? The sector set to lead another quarter of corporate profit growth is...technology!
Just look at the MoneyShow Chart of the Day, which comes courtesy of Bloomberg. As you can see, profits at S&P 500 Index (^SPX) companies are expected to rise a healthy 24.4% in Q3. But earnings in the information technology sector could soar as much as 62%!
Source: Bloomberg
We’ll start hearing from big banks and brokers like JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC), and Goldman Sachs Group Inc. (GS) about how the third quarter went tomorrow. Then big tech companies will follow with their earnings reports soon after. Highlights will include Tesla Inc. (TSLA) on Oct. 21, Alphabet Inc. (GOOGL) and Microsoft Corp. (MSFT) on Oct. 28, and Amazon.com Inc. (AMZN) on Oct. 29
Bloomberg Intelligence analysts believe tech profits will account for about a third of total S&P 500 earnings. But it’s worth noting that FactSet expects profit growth will be widespread. All 11 S&P sectors should show a year-over-year gain, with double-digit gains expected from sectors like energy, communication services, materials, and industrials (in addition to tech).
Will it be enough for investors? As in enough to ignite the year-end rally many are anticipating? We’ll find out soon enough!