With the latest earnings update last week, it wasn’t noticed until post-publication, that only two of the eleven sectors of the SP 500, actually had “greater-than-benchmark” expected earnings growth.
Here is last weekend’s link.
Technology earnings are expected to grow +16.3%
Financial’s are expected to grow +11.8%.
Together, those two sectors represent 35% – 37% of the Sp 500 by market cap.
Add Healthcare’s 15% market cap weight and those three sectors comprise 50% – 52% of the Sp 500’s total market cap.
Four sectors have market cap weights of roughly 3% each:
- Telco
- Utilities
- Basic Materials
- Real estate
Market-cap matters. The best growth is earnings season is coming from the largest sectors. That usually results in bull markets.
Thanks for reading.