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S&P 500 Annual Earnings Growth Holds Steady From Last Week, Oppenheimer Says

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S&P 500 Annual Earnings Growth Holds Steady From Last Week, Oppenheimer Says

S&P 500 companies' quarterly earnings and revenue growth largely held steady week over week as eight of the 11 sectors reported earnings growth in double digits or higher, Oppenheimer Asset Management said Monday.

Results from 455 companies, representing 91% of the total, show year-over-year profit growth unchanged at 51% from financials reported up until last week. Revenue growth ticked up to 14.7% from 14.6%.

Energy led all sectors with earnings surging 147%, unchanged from last week, while healthcare was the only decliner, according to the report. Consumer discretionary and communication services soared more than 110% each, Oppenheimer said Monday.

Energy retained its top spot on the revenue growth chart, at 42%. Technology saw 28% revenue growth compared with 27% a week earlier.

"Continued strong results reported for (second-quarter) earnings season along with economic data that showed inflation surprising to the downside, lent support for the (Federal Reserve) to remain 'on hold,'" Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said in a note to clients.

Last week, official data showed that US annual consumer inflation slowed to a four-month low in July.

S&P 500 earnings upside are "pumping air into arguments predicting stormy weather ahead," the note added.

"In our view, intermediate- and longer-term investors should not be surprised if with the (Chicago Board Options Exchange's Volatility Index) currently at its lower levels that any negative news item could create a spate of indigestion for the markets," Stoltzfus wrote.

The Volatility Index, or VIX, measures S&P 500 implied volatility over the next 30 days.

Some 12 S&P 500 companies report quarterly results this week, including retail heavyweights Walmart (WMT) and Home Depot (HD), along with Analog Devices (ADI).

Price: $114.48, Change: $-0.79, Percent Change: -0.69%

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