Closing the Quarter – Q2’24
As we wrap up our coverage of Q2’24 earnings season, it’s clear that commentary remains heavily influenced by macro factors like the election, the Fed’s actions, geopolitical risks, and shifting consumer behavior.
As we wrap up our coverage of Q2’24 earnings season, it’s clear that commentary remains heavily influenced by macro factors like the election, the Fed’s actions, geopolitical risks, and shifting consumer behavior.
For Q1’24, company performances surpassed already strong expectations, particularly on the bottom line, as executives demonstrated their prowess with productivity initiatives. As a result, the Dow hit 40,000 for the first time in history, and the S&P 500 and Nasdaq also hit record highs after encouraging inflation data this week.
Despite warning signs that have caused concerns in prior economic cycles, many companies at a minimum seem increasingly less worried, and in some cases, outright more confident based on recent quarterly management commentary. Capital allocation trends suggest companies are eyeing growth mode again, particularly with most forecasting a stronger back-half of the year.
As 2024 comes in focus, we will see another batch of conservative annual outlooks, which will serve to calibrate expectations and further support the decoupling of the macro from the markets. Next year will be dynamics for many reasons, but mainly because we have a U.S. Presidential Election, which is sure to influence sentiment and spending behavior.
Despite the gains seen in equity markets through July and increased hope for averting a hard economic landing, there is still a lot of uncertainty out there for both our clients and investors (we’re seeing some of that nervousness manifest itself in August’s market performance). We heard this loud and clear (and early) in our latest Inside The Buy-Side® Earnings Primer®.
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