US fourth-quarter 2024 earnings growth set to be highest in three years
With reports in from nearly 70% of the S&P 500 (.SPX), opens new tab companies as of Wednesday, fourth-quarter earnings are estimated to have risen 15.1% from a year earlier, up from an estimate of 9.6% growth at the start of January, based on data compiled by LSEG.
Fourth-quarter 2024 growth is set to be the highest quarterly earnings increase for the S&P 500 since the fourth-quarter of 2021, said Tajinder Dhillon, senior research analyst, analytics, at LSEG Data & Analytics. Growth for the 2021 quarter was 32.1%, he said, amid a bounceback from COVID-19 pandemic weakness.
The S&P 500 communication services (.SPLRCL), opens new tab sector, which includes companies such as Meta Platforms (META.O), opens new tab, is leading estimated fourth-quarter earnings gains among sectors, with year-over-year growth of 32.2%.
That's followed by financials (.SPSY), opens new tab, with estimated growth of 29.9%, and consumer discretionary (.SPLRCD), opens new tab, with 24.8%, based on LSEG data.
"Earnings are holding up because the U.S. consumer is strong," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
Results have helped to support the stock market despite worries that the Federal Reserve may not cut interest rates anytime soon and uncertainty over the impact of tariffs from the Trump administration.
"At the end of the day, the stock market is about those 500 companies in the S&P 500 - their earnings, their dividend policy and growth trajectory. That is actually what defines a market," Dollarhide said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
an hour ago
- Daily Mirror
Britain's best pubs have been announced - see if your local made the list
The Campaign for Real Ale has published its list of 16 regional winners for its Pub of the Year 2025 competition, with those shortlisted beating thousands of entries. A pub that was closed for five years, one in a converted furniture shop and a local owned by its customers are among those in the running for Britain's best boozer. The list also includes a 300 year old pub which is home to more than 10 local clubs and societies, another run by the same family since 1858, and two micro-pubs. The Campaign for Real Ale has published its list of 16 regional winners for its Pub of the Year 2025 competition, with those shortlisted beating thousands of entries. Four will be picked in October to be in the running for Camra's overall Pub of the Year, to be announced in January. The celebration comes despite recent figures from Camra showing nearly five pubs were lost for good across Britain every week in the first half of this year, with more than 600 standing empty long term. The Mirror is championing the sector, and demanding help, with its Your Pub Needs You campaign. Andrea Briers, Camra's Pub of the Year co-ordinator, said: 'It is a real pleasure to announce this year's top 16 pubs, each of which has demonstrated exceptional quality, warmth and dedication to their communities. 'These pubs are shining examples of what makes the Great British pub so special, from perfectly kept pints to a genuine welcome for all. Achieving this in the face of rising costs and other pressures is no small feat, and we want to see these pubs, and thousands of others like them, continue to thrive. 'That's why we're calling on the Chancellor to give pubs a fair deal in the autumn Budget, so they can keep serving their communities for many years to come.' The top 16 pubs are: East Anglia The pub was derelict and had been closed for five years when it was bought during the first Covid lockdown and brought back to life. Camra says: "This Victorian corner pub has really made its mark as a must visit destination in the short time since it reopened." East Central Camra says: "This 300 year old multi roomed pub is home to more than ten local clubs and societies." East Midlands Camra says: "A well established, friendly and popular micropub, extended over three rooms, with a collection of historical pub memorabilia." Greater London Camra says: "Owned by its customers and totally free of tie, this community pub is 'by beer enthusiasts for beer enthusiasts'." Merseyside and Cheshire Camra says: "National Pub of the Year 2017 a family run community pub with 13 hand pulls, real cider plus a range of spirits. " North East Camra says: "Opened in 2015 in a former furniture shop. There is a back-to-basics approach with an emphasis on conversation and community." North West Camra says: "A 19th century inn with a warm family welcome based on old-fashioned hospitality, home made food, comfortable accommodation and superb real ales an ciders." Northern Ireland Camra says: "It specialises in independent beers, ciders and spirits with fourteen guest taps including four traditional cask beer pumps usually serving two cask ale and two real ciders." Scotland Camra says: "Superb pub run by the same family since 1858. Its bar and snug are traditional, with wooden floors, wood panelling and mirrors from defunct local breweries. There is an attractive gantry topped with old cask and a large TV regularly showing sports." South Central Camra says: "A perennial gem with the only Heritage Pub Interior in Berkshire. Its name refers to bells which were part of the coat of arms of the traditional landowners." South East Camra says: "A stylish multi-award winning alehouse, decorated in an eclectic mix of Victorian, steampunk and art deco themes." South West Camra says: "Dating from the 18th century and originally the town's Debtors' Prison, this locals' pub is entered direct from the public car park or through a leafy garden containing a stream and tropical plants, presided over by a rather bleached stuffed lion. " Wales Camra says: "A friendly and traditional pub. Cosy drinking areas cluster around the small central bar and a larger back room decorated with old photographs of local scenes provides additional seating." West Central Camra says: "Family run traditional ale house. Popular with cyclists, cathedral visitors and fans attending Gloucester Rugby home matches." West Midlands The Tamworth Tap in Staffordshire is among those shortlisted - and could pick up the national Pub of the Year gong for an unprecedented third time. Owner George Greenaway has also backed the Mirror's Your Pub Needs You campaign. The pub, which won Camra's top prize in 2022 and 2023, boasts views of Tamworth Castle and runs themed events including comedy nights, and 'paint and sip' sessions. The courtyard features regular live music with local performers, the occasional screening of cult films on a large screen, and even bat watch evenings. Yorkshire Camra says: "Micropub located in a tiny street between the town centre and the canal. "
Spectator
2 hours ago
- Spectator
In defence of fat cats' growing pay packets
News from the High Pay Centre – the revolutionary guard of left-wing thinktanks – that average FTSE100 chief executive pay rose 16 per cent to a record £5.9 million for 2024-25 comes as a double blessing for Rachel Reeves. On the one hand, she can cite executive greed as a pretext for her forthcoming autumn tax raid, while at the same time claiming that if rewards are soaring, then business conditions under Labour can't be as bad as boardroom whingers say. On the other, she can rejoice that each UK-domiciled boss is contributing to the Exchequer a sum roughly equal to the tax take from 440 average earners. Meanwhile, is the near-£6 million benchmark justified in itself? The High Pay Centre, declaring itself 'for fairer pay, worker voice and better business', clearly thinks not. But if the boss class's prime task is to deliver shareholder value, then a 15 per cent rise in the FTSE index since April last year suggests the pay hike isn't too far out of proportion. And let's get real: these 100 chiefs are mostly drawn from a global talent pool in which the US sets the pace, with average packages at S&P500 companies equivalent to £14 million. Put another way, US corporate titans earn 285 times their average worker's pay, compared with 122 times in the UK. And some pundits argue that relatively low senior pay – implying an inability to recruit the best and general lack of thrust – is one reason why London-listed companies tend to be undervalued by international comparisons. For the growth of the economy, the global stature of the City and the health of our pensions, we'd all like to see them revalued upwards. If that means making fat cats fatter, noxious though it may sometimes be, it's what fuels the jet engines of capitalism. Title bingo I may be less puritanical than I used to be on top pay, but I'm increasingly offended by job title inflation. An American was introduced to me at a recent London party as 'chairman of Barclays': since he didn't look or sound like Nigel Higgins, the British ex-Rothschild executive who actually holds that post, I was intrigued. Research revealed that my new acquaintance was one of seven 'global chairmen of banking', reporting to the 'chair of the global chairmen's group', who presumably reports to the chief executive, who reports to Higgins. Meanwhile I read that J.P. Morgan has hired more than 300 bankers since early 2024, 'nearly a third of those roles [being] at managing director level'. Beware, is all I can say. In the declining days of my own banking career, I migrated from 'head of international corporate finance' with no one reporting to me to divisional 'chief operating officer' with no decision-making power, to 'managing director' with almost no job at all. And then they sacked me. Sell Lilly, buy Greggs How many hedgies were smart enough to short Greggs of Newcastle at the same time as they took long punts on Novo Nordisk of Denmark and Eli Lilly of Indianapolis? The latter duo, leaders so far of the weight-loss drug bonanza as the makers respectively of Ozempic (also sold as Wegovy) and Mounjaro, saw their share prices multiply as the trend caught fire with body-conscious consumers. Nordisk stock has fallen back from its peak as Lilly's challenge has accelerated, but both have hugely outperformed the indices – and market-watchers are wondering whether the mini-boom has run its course, given pressure from President Donald Trump for cheaper drugs in the US and the likelihood that other players, as yet unidentified, will launch competitive products that claim fewer side-effects. Accordingly, both shares have become hyper-sensitive to news items and investor swings – though buy-the-dip tipsters still favour Lilly. What's Greggs got to do with it? The share price of the northern FTSE250 pastry chain has halved in the past year as customers jumped on the weight-loss wagon and cut out the sausage rolls – but the company has launched a fightback with 'smaller portions and protein-rich alternatives' for the Mounjaro market. 'Sell Eli Lilly, buy Greggs' would be a brave contrarian trade; but who knows, it might be the next winner. Too many foreigners A hot topic here in France is the plague of surtourisme. In short, as in many parts of Europe, too many damned foreigners crowding everywhere, landing from cruise ships and, according to one report, leaving 'dispossessed' residents rarely hearing a word of spoken French. The solution is likely to be quotas, obligatory pre-booking and higher entry fees for sensitive sites. But in the rural Dordogne, not so bad: mine was the only non-French party at this week's hunt feast, served by local farmers who I sense care nought for economic swings or tourist surges so long as crops grow and there are boar to be shot (a big one – boar, not farmer – trots across the orchard as I write). It is, however, harder to book good restaurants this season. Hence, as several readers have complained, a paucity of my usual tips – so I've exercised my own surtourisme by harvesting a selection from Brits dotted around the Michelin map. Here, at speed, is my 2025 tour de France. In Normandy, La Source in Veules-les-Roses is for oyster-lovers and Le Drakkar at Deauville is for jet-setters. In Haut Vienne, L'Estaminet du Château at Rochechouart is for anyone keen on carpaccio of pig's trotter. If you're in Avignon and have won the lottery, enjoy eight courses at La Mirande. In Vaucluse, seek out the hidden gem of La Bartavelle in Goult; in Luberon, go upmarket to La Bergerie de Capelongue in Bonnieux but remember the 'de facto dress code is soirée blanche'. Back in the Dordogne, my own value lunch pick is Auberge de la Nauze at Sagelat; if you really like it, the whole place is for sale. And after so much gourmandising, we'd all be wise to refocus on weight loss.
Reuters
4 hours ago
- Reuters
Kenya in talks with China to convert dollar rail loan into yuan
NAIROBI, Aug 20 (Reuters) - Kenya is in talks with China to convert a dollar-denominated railway loan into Chinese yuan, an aide to the Finance Minister John Mbadi told Reuters on Wednesday. China is Kenya's biggest bilateral lender, and the country took on the debt to construct a $5 billion high-speed railway, one of the country's largest infrastructure projects to date. Bloomberg News reported the plans to convert the loan earlier on Wednesday, saying it would save money due to lower interest rates in China compared with the United States. Kenya has been working to reduce its debts, as investors and the International Monetary Fund say it remains at high risk of debt distress. Last year, the East African nation's efforts to hike taxes to improve its financial situation sparked deadly protests, leading the government to backtrack. It has since tried to find other ways to create more fiscal space. Chinese authorities were not immediately available for comment.
