"UBS Global Wealth Management released a research note on Wednesday morning, citing the trend that early-reporting companies "tend to have a good relationship with how the rest of earnings season plays out." With a little less than 10% of the S&P 500 market cap reporting, the team led by David Lefkowitz, Head of US Equities, characterized the results as "decent," with 80% beating sales estimates and just over 70% beating earnings-per-share estimates."
"Tech stocks helped lead the way on Wednesday, thanks in part to a profit report from ASML, which is a major supplier to the semiconductor industry. The Dutch company said it expects its revenue for 2025 to be 15% above last year's, while next year's should be at least as high as this year's. "On the market side, we have seen continued positive momentum around investments in AI," CEO Christophe Fouquet said, "and have also seen this extending to more customers.""
Stocks climbed as the S&P 500 rose 0.8%, the Dow gained about 254 points, and the Nasdaq advanced 1.1% by late morning. Early reporters showed decent results: roughly 10% of S&P 500 market cap had reported, 80% beat sales estimates, and just over 70% beat EPS estimates, though median beats were modest at 2.2% versus a 3.5% historical average. UBS views the earnings season as supportive of a bull market driven by durable earnings growth and anticipated Federal Reserve rate cuts. Tech gains were bolstered by ASML raising 2025 revenue expectations and citing continued AI investment momentum.
Read at Fortune
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