Analysts have sharply upgraded their earnings forecast for the S&P 500, driven by strong results from major technology firms, notably Apple’s highest quarterly sales in over four years, despite persistent geopolitical and commodity challenges.
Wall Street’s outlook for S&P 500 earnings firmed sharply last week as a rush of results from the market’s largest technology groups lifted forecasts, even as crude prices stayed elevated and the dispute with Iran showed no sign of easing. Data from LSEG IBES showed analysts now expect first-quarter profits for the index to jump 27.8%, a pace that would be the fastest since late 2021.
That is a marked upgrade from the 16.1% rise projected a week earlier and the 14.4% gain seen a month ago. Reuters reported that the revision came after the heaviest stretch of reporting season, when megacap names including Alphabet, Meta Platforms, Amazon.com and Microsoft set the tone for investor sentiment.
Apple added to that momentum on Thursday by posting its strongest quarterly sales growth in more than four years, according to Reuters. The company said revenue for its fiscal first quarter reached $119.6 billion, with net profit of $33.9 billion and earnings per share of $2.18. That was supported by robust iPhone demand and a record for Services revenue, while the installed base of active devices climbed above 2.2 billion, the company said.
Other reports pointed to some softer spots inside the numbers, including a 13% fall in sales in China and a decline in iPad revenue after Apple did not launch a new model in 2023. Even so, the broader earnings picture improved enough to shift expectations across the index, underscoring how much the biggest technology firms continue to influence the market’s profit trajectory.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The article references data from February 2024, which is over two months old. While the S&P 500 earnings outlook may have evolved since then, the article does not provide more recent information, potentially affecting its freshness. Additionally, the article appears to be based on a press release, which typically warrants a high freshness score. However, the lack of updated data raises concerns about its current relevance.
Quotes check
Score:
6
Notes:
The article includes direct quotes from companies like Apple, but these quotes cannot be independently verified through the provided sources. Without access to the original press releases or earnings reports, the authenticity of these quotes remains uncertain. This lack of verifiable sources diminishes the credibility of the information presented.
Source reliability
Score:
5
Notes:
The article originates from Yahoo Finance, a major news organisation, which is generally considered a reliable source. However, the reliance on press releases and the absence of independent verification for some claims raise concerns about the overall reliability of the content. The presence of aggregated content from other sources further complicates the assessment of source independence.
Plausibility check
Score:
6
Notes:
The claims about the S&P 500 earnings outlook and the impact of major technology companies are plausible and align with industry trends. However, the lack of supporting details from other reputable outlets and the absence of specific factual anchors (e.g., names, institutions, dates) weaken the overall credibility of the narrative. The tone and structure of the article also raise questions about its authenticity.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents plausible claims about the S&P 500 earnings outlook and the impact of major technology companies. However, the reliance on press releases, the lack of independent verification for some claims, and the absence of supporting details from other reputable outlets raise significant concerns about its credibility and freshness. The content's originality and independence are also questionable, further diminishing its reliability.
