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Early S&P 500 Results Smash Profit Growth Estimates, Oppenheimer Says

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Early S&P 500 Results Smash Profit Growth Estimates, Oppenheimer Says

Quarterly results of an initial batch of S&P 500 companies show that earnings growth so far is tracking at more than double the expected pace, according to an Oppenheimer Asset Management report released Monday.

Some 47 companies, or less than 10% of the large-cap index' constituents, have reported financial results in the current cycle, with earnings and revenue up around 52% and 16% year over year, respectively, the report showed.

Ahead of the reporting season, FactSet put expected earnings growth at 23.6% from a year earlier, according to Oppenheimer.

"The (second-quarter) earnings season got off to a solid start last week," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said, highlighting "outsized" results particularly among technology and financial companies.

The technology sector so far led earnings growth among the 11 sectors, with results from five companies showing a nearly 243% surge in profits year over year, the report showed. The financial sector followed with a 38% increase.

Technology also outshined in terms of revenue with a 67% jump so far, followed again by financials, which saw an increase of 18%.

This week, 86 S&P 500 companies are scheduled to release their latest quarterly financials, according to Oppenheimer. Two of the so-called Magnificent 7 -- Alphabet (GOOG, GOOGL) and Tesla (TSLA) -- report after the markets close Wednesday.

Also releasing their quarterly results this week are Intel (INTC), Philip Morris International (PM), RTX (RTX), T-Mobile US (TMUS), American Express (AXP), International Business Machines (IBM), AT&T (T), and NextEra Energy (NEE).

"We continue to expect good results for S&P 500 earnings this reporting season as fundamentals remain in our view conducive to continued economic growth that should be supportive of revenue and earnings growth going forward," Stoltzfus said.

Price: $356.94, Change: $+10.82, Percent Change: +3.13%

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