The Market Needs This Change in Corporate Earnings

After a historic rally to begin 2023, stocks cooled off in August... The S&P 500 Index rose for five straight months from March through July. It was the benchmark index's longest winning streak since 2021. [Chaikin PowerFeed]( The Market Needs This Change in Corporate Earnings By Briton Hill, analyst, Chaikin Analytics After a historic rally to begin 2023, stocks cooled off in August... The S&P 500 Index rose for five straight months from March through July. It was the benchmark index's longest winning streak since 2021. And in July, the Dow Jones Industrial Average climbed for 13 straight days. That type of rally hadn't happened since 1987. Without question, the market was soaring through the end of July. But it only takes one bad month to shake investors' confidence. And that's exactly what happened in August... The S&P 500 fell roughly 1.8% during the month. And the Dow dropped around 2.4%. Folks, here at Chaikin Analytics, [we've been "bullish" on stocks since January](. It was hard to take that stance after a brutal 2022. But as you know, the market has been on our side. The Power Gauge has tracked every inch of the rally, too... In early February, our one-of-a-kind system flashed "bullish" on the S&P 500 for the first time in several months. And it has solidly held that rating since mid-March. Yes, the Power Gauge is still "bullish" today. The pullback hasn't changed that outlook. Even better, a key market factor is now flashing in our favor as well. As a result, we can expect the good times to resume in the days ahead. So now is not the time to give up... Recommended Links: [If You Missed the AI Frenzy, Here's Your Next Move]( The question on everyone's mind today: "I missed out on the big gains in AI stocks earlier this year... am I too late?" The short answer is NO. But it's absolutely critical that you understand what's coming next... a market twist that could make this year's AI frenzy pale in comparison. [Click here for details](. ["Federal Bitcoin" Is Coming to a Bank Near You, Starting NOW]( Last month, the U.S. government took the first step toward creating its own cryptocurrency... a "federal bitcoin." The U.S. Treasury and 120 banks have already signed up for it. If you get positioned before the wider rollout, you could make 3,050%. [Click here to learn more](. Put simply, all eyes are on corporate earnings right now. It's one of the most important factors for the stock market's long-term performance... For starters, corporate earnings are key when it comes to determining a stock's value. And they provide guidance that can be used to project future share-price appreciation as well. Importantly, this factor is validating our "bullish" stance today... After months of going the other way, Wall Street analysts are now revising their earnings-per-share ("EPS") estimates higher. Specifically, they've collectively raised their EPS estimates for the third and fourth quarters. And they've raised 2024 full-year forecasts, too. Estimates for third-quarter EPS rose 0.4% from June 30 to August 31. And fourth-quarter EPS estimates increased by 0.6% over the same period. This change is worth watching – especially since corporate earnings are down from their 2022 peak. Take a look... [Chaikin PowerFeed] In short, we've been in an "earnings recession" since last year. But Wall Street analysts are finally turning optimistic on corporate earnings moving forward. Plus, history tells us that November and December are some of the best months for stocks. And with corporate earnings on the rise, we expect good times through the end of 2023. That's great news for investors like us, of course. Turning "bullish" earlier this year wasn't a popular call. But fortunately, it has panned out well. And now, corporate earnings are turning around. This key market factor can make a big difference down the line. So don't give up after a bad month for stocks. Instead, hold steady and prepare for more gains ahead. Good investing, Briton Hill Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.57% 13 13 4 S&P 500 -0.69% 145 250 104 Nasdaq -0.86% 51 39 9 Small Caps -0.35% 450 1003 479 Bonds +0.25% — According to the Chaikin Power Bar, Small Cap stocks have become somewhat more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Energy +2.73% Information Technology +0.09% Financial -0.64% Materials -1.04% Discretionary -1.12% Communication -1.15% Real Estate -1.96% Industrials -2.07% Staples -2.39% Health Care -2.51% Utilities -2.75% * * * * Industry Focus Oil & Gas Exploration & Production Services 29 26 2 Over the past 6 months, the Oil & Gas Exploration & Production subsector (XOP) has underperformed the S&P 500 by -1.60%. However, its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #6 of 21 subsectors and has moved up 1 slot over the past week. Top Stocks [rating] EGY VAALCO Energy, Inc. [rating] REX REX American Resourc [rating] PBF PBF Energy Inc. * * * * Top Movers Gainers [rating] DXCM +6.53% [rating] ZBH +4.12% [rating] PODD +3.44% [rating] CHTR +2.69% [rating] CNC +2.33% Losers [rating] OGN -5.57% [rating] ALB -5.46% [rating] MKTX -5.44% [rating] LMT -4.77% [rating] VTRS -4.71% * * * * Earnings Report Reporting Today Rating Before Open After Close SAIC DOCU, SMAR TTC GWRE, RH No earnings reporting today. Earnings Surprises [rating] CXM Sprinklr, Inc. Q2 $0.06 Beat by $0.05 [rating] PATH UiPath Inc. Q2 $0.11 Beat by $0.09 [rating] AI C3.ai, Inc. Q1 $-0.09 Beat by $0.08 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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