Market Minute - March 2023

Fourth quarter earnings season has largely wrapped up and the S&P 500 Index is on track to post its first year-over-year decline in EPS since the COVID-19 lockdowns of 2020. Revenues did grow as inflation helped companies post solid top line results (revenue is reported in nominal terms). Margins, on the other hand, came under pressure as expenses outgrew revenue leading to the earnings shortfall. Tech+ was a noticeable laggard, particularly e-commerce and communication services names. Without the Tech+ headwinds, the S&P 500 Index would be on track to grow EPS about 5% in Q4.

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Posted on Friday, March 3, 2023 @ 1:45 PM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.