Earnings Season Brings Good News...

Could the market really keep climbing? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

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View in browser SPONSORED Better Than Oil Stocks The best way to profit from energy is NOT a stock... Rather, it's this little-known alternative investment. CLICK HERE TO FIND OUT MORE MARKET TRENDS Earnings Season Already Delivering Good News for the Market Matt Benjamin, Senior Markets Expert, The Oxford Club Third quarter earnings season kicked off with a bang last week. As they do every quarter, the big investment banks launched the reporting season for quarterly financial results. JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) both reported results last Friday, and the market was watching closely for an update on the health of both consumers and businesses. Those big money center banks - together with rivals like Citigroup (NYSE: C) and Bank of America (NYSE: BAC) - are major pipelines for money moving through the economy. As such, they can provide bountiful information about both borrowing and spending (two activities that are vital to economic growth). And while loan demand remained weak in the third quarter - mostly due to elevated interest rates engineered by the Federal Reserve since early 2022 - consumer finances and spending continue to be healthy, despite the higher inflation of the last few years. With consumer spending driving roughly two-thirds of economic activity, that's a very good sign indeed... for both the economy and investors. In fact, industry analysts were predicting worse earnings for the big banks due to the still-meager lending demand. But the banks have outperformed those expectations so far, and their earnings are expected to improve going forward as the Fed lowers interest rates and loan demand rebounds. As a result, both JPMorgan's and Wells Fargo's stocks soared, recording their best daily performances since April 2023 and February 2024, respectively. The S&P 500 also rose on the news. SPONSORED Wall Street's Dream: Trump's 'Document 20' Top analyst reveals how "Document 20" could replicate – and maybe even exceed – the gains of Trump's first Stockwave... Which sent stocks soaring as high 3,480% during his first term. See details on which stocks could explode during Trump's second term. FactSet tracks both earnings estimates by equity analysts and actual earnings, and it predicts the S&P 500 will report earnings growth of about 7% this quarter (compared with the same quarter a year ago). And as you can see in the chart below, S&P 500 overall earnings have been growing at an accelerating pace since the third quarter of 2023... View larger image   As Chief Investment Strategist Alexander Green periodically reminds us, a company's earnings growth is the best indicator of where its stock price will go in the medium to long term. By extension, the aggregate earnings of an index are the best indicator of where the broader market (as measured by the S&P 500 in this case) will go in the medium to long term. Much More to Come Bottom line: If earnings continue to grow as they have been for the last four quarters, it's a very good sign that the current two-year bull market can continue to climb. (That's assuming there isn't a shock like a war involving the U.S. or a spike in oil prices, of course.) And there's much more to come. Smart investors will be watching the earnings of several bellwether companies over the next few weeks to get a more accurate measure of the health of consumers and businesses. These companies include airlines, manufacturers, automakers, restaurant chains, and mega tech companies closely linked to artificial intelligence. So we should all continue to monitor corporate earnings. As they go, so go the prices of the stocks we own and the long-term health of our portfolios. Invest wisely, Matt Leave a Comment BUILD AND PROTECT YOUR WEALTH Former CBOE Trading Legend Showed Members 246% Total Gains While the S&P Was Down 20% During the COVID Crash. Now He's Hosting a Free Class Revealing the Answer to Big Wins. Click for More! Are You Ready for Third Quarter Earnings Season? The Most Powerful Monthly Pattern in the Market The Truth About the "Golden Rule" of Investing MORE FROM WEALTHY RETIREMENT Is Iron Mountain's Stock Climbing Too High? Can Northwest Bancshares Afford Its 6% Yield? The Best Way to Reduce Risk in Your Portfolio Is Diversification Really as Wise as It Seems? Facebook LinkedIn Email Share Push Alert SPONSORED New IPO Stock Creates Massive Controversy Online After giant Apple deal, some say it will be the next trillion-dollar company. Decide Who's Right Here. You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our FAQs. Trying to reach us? 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