The start of the earnings season on Wall Street. Analysts predict an increase in the profit of S&P500 companies

The quarterly earnings season is starting on Wall Street. In the coming weeks, until the Federal Reserve (Fed) meeting, this will be the main market topic shaping the mood on the US stock market.

What will earnings season bring on Wall Street?

Today, the season for companies publishing their financial results for the fourth quarter of 2023 begins on Wall Street. Traditionally, it will be opened by large American banks. Before the start of Friday's session in the US, quarterly reports will be published by Bank of America, Bank of New York Mellon, Citigroup, JP Morgan Chase and Wells Fargo. On Tuesday, January 16, they will be joined by Goldman Sachs and Morgan Stanley.

The earnings season will begin in earnest from January 22 and until the US meeting scheduled for January 30-31. Federal Reserve (Fed), will be one of the main elements shaping the mood on the American stock exchange, and indirectly also on other global markets.

US500 daily chart (S&P 500 Index CFD). Source: Tickmill

Analysts predict that in the fourth quarter of 2023, the profits of the companies included in the composition will increase S & P500 index increased by 1,3 percent year to year (Y/Y), while their revenues increased by 3,1% in the same period. R/R.

There is a good chance that the companies will ultimately manage to exceed this market consensus, because analysts have recently been systematically lowering their earnings forecasts. Another factor that may support a positive reaction to the results is the fact that management boards may already be feeling some optimism in company reports, after the Fed made a "dovish turn" in its policy at the last meeting, announcing that the next decision would be to cut interest rates in the US .

American banks will open the earnings season on January 12, and investors' attention will continue to focus primarily on the financial reports of technology companies. And so Microsoft will publish its financial report on January 22, Tesla it will be done on January 24, Intel – on January 26, MetaPlatforms (Facebook) – January 30, a Amazon i A (Google) – January 31. After the end of the first trading session in February, the results will be announced Apple Lossless Audio CODEC (ALAC),, and on the results Nvidia investors will have to wait until February 21.