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Earnings season is off to a solid start, with 80% of S&P companies beating expectations. We have some big earnings coming up, including:
Oct 21: NUE
Oct 22: GE, PM, TXN, LMT, 3M, GM, PHM
Oct 23: TSLA, KO, TMO, NOW, NEE, BSX, LRCX, BA
Oct 24: HON, KKR, UPS, AAL, LUV -Oct 25: SNY, CL
Most of the Magnificent 7 are reporting next week. Insiders have been selling shares into all-time-highs (ATHs), which could be profit taking, but any time we're at ATHs, it's a good idea to temper your exuberance and ensure you're hedged to the downside.
The IMF is reporting its economic outlook on Tuesday. They're expected to highlight the mounting debt of multiple countries.
A couple of major factors are also influencing markets: economic health in the US (and other large countries) and geopolitics, particularly the Middle East. Uncertainty continues to loom as the presidential election approaches.
Goldman analysts say that after 2024, big tech outperformance in the S&P will level out and broaden into other sectors, with the equal-weighted S&P outperforming the megacap-only index. What does this mean for you? Ensure you're not too heavily concentrated in tech stocks only - look to broaden and diversify. Don't forget about bonds, cash, crypto and international markets. Speaking of diversifying, gold hit another ATH.
Before you panic about US equities, the Economist released a report about US economic strength, noting the following: In 1990, the US accounted for 40% of the GDP of the G7 group of wealthy countries. Today, it makes up roughly half. -US economic output per person is 40% higher than in Western Europe and Canada, and 60% higher than in Japan.
AI startup Perplexity is in talks to raise $500M at a ~$9B valuation. They are building a search engine to rival Google.
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