Key takeout
Nvidia (NVDA)’s latest revenue report has hit the market, but according to a new analysis, there are some bullish signs in the S&P 500 figure.
As of Thursday, the S&P 500 reported a revenue increase of around 18%, according to Factset. According to data providers, 77% of companies were violating Wall Street earnings per share (EPS) estimates, along with their five-year average.
Factset said financial institutions are the best performance sector on the benchmark, earning revenue growth of 55% during this season.
Tariffs mentioned in the revenue call
Still, aside from Nvidia not surpassing its already high revenue bar, tariffs, a key subject in the market, was a major corporate issue. The term “customer duties” was mentioned at least once in a revenue call by 221 companies reported between December 15th and February 21st, Factset said.
US President Donald Trump said on Thursday that tariffs on Mexico and Canada will come into effect on March 4th, with additional tariffs being imposed on China. Economists have expressed concern that sudden new tariffs could boost prices for consumer products and rekindle inflation with emphasis on economic growth.
And another downbeat conclusion from that study: Factset found that 72 companies issued negative EPS guidance above the 56 average over five years.
NVIDIA’s stock is extending the decline from Thursday as results that outperformed the company’s estimates failed to impress the high standards of investors for AI darlings. Reports from several consumer-focused companies are scheduled for next week, including Costco Wholesale (Cost), Best Buy (BBY), and Target (TGT).
