Tuesday, 02 January 2024 12:17 GMT

US Firms To Post Bumper Earnings This Season Despite Iran War


(MENAFN- Investor Ideas) (Investorideas Newswire) a go-to platform for big investing ideas, including energy stocks issues market commentary from deVere Group.

Corporate America is set to deliver bumper earnings despite the Iran war, predicts the CEO of one of the world's largest independent financial advisory organisations.

The bullish prediction from Nigel Green of deVere Group

Bank of America and Morgan Stanley report today, Netflix and PepsiCo tomorrow, with Big Tech-including Microsoft, Alphabet, Apple, and Amazon-all next week.

Analysts now expect S&P 500 companies to deliver double-digit earnings growth for the first quarter of 2026, with consensus estimates pointing to around 12% year-on-year expansion.

Some projections suggest growth could push closer to 18–19%, marking one of the strongest quarters since the post-pandemic rebound period.

He points to the policies of President Donald Trump as a critical force shaping the current outlook.

Currency dynamics are adding further support. The US dollar remains weaker compared with its levels at the start of 2025, boosting the overseas earnings of multinational corporations.

He adds that the earnings story is not uniform across sectors, with clear divergence emerging beneath the headline numbers.

These results will be pivotal. Financials will give a read on economic momentum, while tech will determine whether the market's earnings expectations remain justified.

Recent market performance underscores the resilience he describes. Equities have rebounded strongly following news of a temporary ceasefire between the US and Iran, with the S&P 500 recovering close to pre-conflict levels.

Nigel Green argues that the current environment highlights a recurring pattern in markets.

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