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LIVE MARKETS-Q1 US earnings season on pace to be best since 2021, but consumer outlook weak

ReutersMay 11, 2026 6:23 PM

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Main US indexes modestly positive
Energy leads S&P 500 sector gainers; Comm Svcs weakest group
Dollar, gold edge up; bitcoin gains >1%; US crude rallies >3%
US 10-year Treasury yield rises to ~4.40%

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Q1 US EARNINGS SEASON ON PACE TO BE BEST SINCE 2021, BUT CONSUMER OUTLOOK WEAK

S&P 500 companies are on track to post their biggest first-quarter earnings growth since 2021, according to Savita Subramanian, equity & quant strategist at BofA Securities.

The season "has blown past expectations," she writes in a note Monday. Based on results from 445 of the S&P 500 companies, the S&P 500 .SPX is on pace to deliver 26% EPS growth year over year, she says, but that growth is at 18% if one excludes large one-time gains recognized by Amazon.com AMZN.O, Alphabet GOOGL.O and Meta Platforms META.O.

In addition, she says, "strength isn't confined to mega-cap Tech," with the median stock increasing EPS by a solid 12% year over year.

Results suggest robust demand in artificial intelligence and a "broadening industrial recovery," she notes.

But not all is positive, with weakness seen in the consumer space. Among comments from companies, she notes that McDonald's MCD.N flagged weakness among lower-income consumers.

In addition, she says, "although April jobs beat expectations... and layoff talk remains contained outside of Tech, BAC aggregated credit and debit card data... notably softened last week - could just be a blip, or an early sign that higher gas is taking a toll."

(Caroline Valetkevitch)

EARLIER ON LIVE MARKETS:

IS AI FUELING A TECH BUBBLE OR JUST A FAMILIAR CYCLE? CLICK HERE

HOME SALES, WEIGHED BY HIGH BORROWING COSTS, SLIDE SIDEWAYS CLICK HERE

WALL STREET STOCKS MIXED AS IRAN WORRIES PERSIST CLICK HERE

NASDAQ 100'S AI GLOW MASKS A HIGHER BAR CLICK HERE

ENERGY'S BIG LEAD COMES WITH A BIG WARNING CLICK HERE

SELL ANY BEAR MARKET RALLY IN LUXURY NAMES - BERENBERG CLICK HERE

ECB HIKING PATH IN A CREDIBLE ESCALATION SCENARIO CLICK HERE

TIME TO INVEST IN DEFENCE? CLICK HERE

IRAN WAR IMPASSE CONTINUES, EUROPEAN STOCKS MIXED CLICK HERE

EUROPE BEFORE THE BELL: PEACE TALKS SUFFER ANOTHER HICCUP CLICK HERE

PEACE PROGRESS STALLS, AI RALLY DOES NOT CLICK HERE

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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