The US Q3 reporting season has been better than expected. This is one of the key reasons US equities have made fresh all-time highs.
Equity markets “climb the wall of worry” and there were consensus concerns about what would be delivered in this US reporting season. Those concerns proved too bearish.
With nearly 70% of the S&P 500 having now reported to investors, it’s worth taking a step back to place the picture that has emerged into context. While there is a general trend of slowing economic activity, with the uncertain policy and trade environment cited as the main contributing factor by many businesses, US companies are navigating the landscape reasonably well, although there are substantial variations between sectors.