Earnings Surge

Oh, it is a matter of time before society revolts against AI. (NYT)

First time since 2016 that the number of S&P 500 employees declined.

All the hype around AI but GLP-1s are actually generating more revenue. (@agingroy)

You would think that buying Lockheed Martin as the U.S. bombed Iran would be a good trade. You should have sold the news. The stock topped the day after the first strike.

Poor defence stock performance has been mixed around conflicts. (@biancoresearch)

The stock market is being driven by a surge in 12-month forward profits, which are up 12% (approximately $600 billion) in the last four months. This represents the largest upward revision on record, excluding post-recession recoveries.

And diving deeper, it’s the AI complex and energy driving earnings higher.

Korea is expected to be home to the 2 most profitable companies in the world all of a sudden.

Those expecting profit margins to mean revert have been sorely wrong. Super interesting. Has the mean reverting nature of this series been broken by technology? It is quite possible.

The Mag 7 trades at a premium to the rest of the S&P 500 but they’ve grown earnings at twice the rate of the rest of the market. Can it continue or is the Mag 7 overvalued? (@MikeZaccardi)

On a PEG ratio basis, Tech looks cheap.

U.S. imports are actually declining year over year.

UAE to exit OPEC. Not sure what it means yet.

Must listen. He thinks the market is expensive.