2/5

SPY Flat as Strong Earnings Support Modest Gains

The S&P 500 futures are buoyed by strong earnings reports as the fourth-quarter reporting season unfolds. According to BofA Global Research, U.S. investment-grade issuers have demonstrated a +14.2% y/y earnings growth, excluding the Energy and Finance sectors. This robust performance has been driven by sectors such as Technology, Banks, and Health Care, which have exceeded expectations with a +5.5% earnings surprise, significantly above the pre-Covid average. Revenue surprises also contributed positively, coming in at +0.9%, reflecting the resilience of U.S. corporates in a challenging economic environment.

The SPDR S&P 500 ETF (SPY) closed at $604.22, marking a 0.41% increase for the day, and is currently trading at $604.37, up 0.43% from the previous close as of 16:40 on Wednesday, February 5.