Overview
- FactSet data show 84% of S&P 500 companies beat estimates so far, with 63% reported and a blended year-over-year earnings gain of 27.1% versus 13.2% expected at the quarter’s start.
- Another 128 S&P 500 firms report this week, including Pfizer, AMD, Walt Disney, and McDonald’s, and Nvidia is the lone mega-cap still to report on May 20.
- Big Tech topped forecasts but shares moved in different directions, with Alphabet up 12% on stronger Search and Cloud, Meta down 9.8% on higher AI capital plans, and Apple up 3.4% after raising its outlook.
- Analysts say large AI build-outs may take years to lift profit margins, which makes near-term guidance harder to read.
- Markets are also watching oil risks tied to Iran and the U.S. jobs report, with payrolls expected to rise about 62,000 and unemployment at 4.3%.