S&p 500 Earnings Season Is Beating Expectations So Far
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Hershey stock edged higher by 2% before the bell after reporting an upbeat outlook, with higher prices and new products helping to boost performance. The company reported an operating loss of $17.4 billion for the fourth quarter and a net loss of $12.4 billion, or $42.93 per share. The company reported adjusted earnings per share of $1.04 and revenue of $333.9 million, beating estimates. According to FactSet data, 59% of S&P 500 companies have reported fourth quarter results as of Feb. 6. Sector ETFs products are also subject to sector risk and nondiversification risk, which generally results in greater price fluctuations than the overall market.
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After the gaming company beat estimates in its fourth-quarter earnings report, Roth is upgrading its rating on Roblox to buy from neutral. Also among the key risks to stock market returns are the trajectory of AI capex, returns on that investment spending, and the impact of AI adoption. The biggest risks to an equity market rally are weaker than expected economic growth or a hawkish shift by the Fed. “Neither appears likely in the near future,” Snider notes. “In our base case outlook, steady long-term interest rates and earnings growth rates suggest there will be little change in equity valuations during 2026,” Snider writes. Double-digit earnings growth is “providing the fundamental base for a continued bull market,” he adds.
- The Fed cut rates twice so far in 2025, with investors anticipating another rate cut at the December meeting.
- View the latest analysis of S&P 500 Q4 net profit margin performance in this FactSet earnings report.
- Investing across different sectors helps diversify risk and capture growth opportunities in various parts of the economy.
- But as capex is on track to reach 75% of cash flows—similar to tech company expenditures in the late 1990s—spending growth going forward will increasingly rely on debt funding.
- The company reported Q4 earnings per share of $0.65 and net sales of $489.5 million.
How The Indexes Fared In The First Week Of February Trading
“The US equity market’s current combination of elevated valuations, extreme concentration, and strong recent returns rhymes with a handful of overextended equity markets during the last century,” according to Goldman Sachs Research. “Nonetheless, as concentration has risen, so has the idiosyncratic risk embedded in the S&P 500 and investor dependence on the continued strength of the largest US companies,” Snider adds. Fueled in part by spending on AI, the top tech stocks accounted for 53% of the S&P 500’s return in 2025.
Holdings And Performance
Read the latest FactSet report on Q4 S&P 500 earnings, featuring quantitative analysis of EPS, earnings, revenues, and sector… Meanwhile, investors will watch whether megacaps can keep the beat rate near 79% and profit growth around 15% – or whether strength narrows further. S&P 500 earnings are beating expectations, and a big week of megacap reports plus Friday’s US jobs data could set the market’s next direction. The company reported revenue of $1.71 billion and earnings per share of $0.03, beating estimates. The company reported Q4 earnings per share of $0.65 and net sales of $489.5 million.
- Analysts initially expected an 8.3% jump heading into the reporting period.
- Based on total assets, 3-month average trading volume and 30-day average bid/ask spread.
- Get the latest data on Q4 S&P 500 midseason earnings.
- Roblox on Thursday reported fourth-quarter revenue and losses that were better than consensus estimates, along with a better-than-expected bookings forecast for the current quarter.
- Current performance may be higher or lower than that quoted.
Market Synopsis
Strategy currently holds 713,502 bitcoins with an average Everestex reviews purchase price of $76,052; with bitcoin’s spot price around $63,000, the company’s unrealized losses are about $8.9 billion. For 2026, it expects earnings per share of $7.87 to $8.02, missing the $8.08 midpoint analysts expected. Monday.com shares tanked 14% after the software maker beat earnings estimates but posted guidance that disappointed Wall Street. Analysts initially expected an 8.3% jump heading into the reporting period.
- For 2026, it expects earnings per share of $7.87 to $8.02, missing the $8.08 midpoint analysts expected.
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- Watch FactSet’s quantitative discussion of outlooks for Q4, sector-level expectations, and…
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The S&p 500 Is Expected To Rally 12% This Year
U.S. equity futures moved slightly higher on Sunday night. The first trading week of February saw major volatility, with the three major averages surging Friday after seeing sizable losses earlier in the weekly period. The ruling Liberal Democratic Party captured a two-thirds supermajority in the 465-seat lower house, public broadcaster NHK reported.
Why shouldn’t you just invest in the S&P 500?
If you have a lower risk tolerance or are approaching retirement, relying solely on the S&P 500 could lead to uncomfortable swings in your portfolio value. Over time, this volatility can cause issues both emotionally and mathematically. It can be stressful to see large swings in your investments.
Invest With The Leader In Sector Etfs
The latest developments sent shares of Hims & Hers Health down around 20% in early trading, while Novo Nordisk shares gained more than 5%. Analyst Gil Luria wrote that OpenAI has "corrected several missteps" since September, with the company refocusing on ChatGPT and its core frontier model. Roblox shares are down more than 44% in the last six months, but were up 7% in morning trading. New games, he added, have had a strong return on investment.
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The information provided does not constitute investment advice and it should not be relied on as such. Investing involves risk including the risk of loss of principal. All ETFs are subject to risk, including the possible loss of principal. Select Sector SPDR Funds bear a higher level of risk than more broadly diversified funds. This may cause the fund to experience tracking errors relative to performance of the Index.
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