Second-quarter U.S. earnings estimate still weak, but improving By Reuters

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<p>By Caroline Valetkevitch</p>
<p>NEW YORK (Reuters) -The forecast for second-quarter earnings is looking slightly improved from a week ago, although it remains weak with results in from more than half of the S&amp;P 500 companies, Refinitiv data showed Friday.</p>
<p>Second-quarter earnings for S&amp;P 500 companies now are estimated to have fallen 6.4% year over year. While still negative, the forecast is an improvement from the 7.9% drop estimated a week ago.</p>
<p>The latest estimate is based on results from 254 of the S&amp;P 500 companies and projections for the remaining components. About 79% of reports are beating analysts’ earnings expectations.</p>
<p>“It’s mixed, but you’ve had a lot of high-profile companies that beat,” said Tim Ghriskey, senior portfolio strategist at Ingalls &amp; Snyder in New York.</p>
<p>Among this week’s upbeat results, Alphabet (NASDAQ:)’s second-quarter profit exceeded Wall Street expectations.</p>
<p>The earnings forecast tends to improve with stronger-than-expected results.</p>
<p>Year-over-year earnings rose 0.1% in the 2023 first quarter, which was much better than the forecast for a 5.1% drop at the start of the reporting season. </p>
<p>Stocks have been rising despite the still-weak earnings picture, partly on expectations that the Federal Reserve may be nearing the end of its rate-hiking cycle. The S&amp;P 500 registered its highest close Friday since April 2022.</p>
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