After the closing bell today, four of the “Magnificent Seven” stocks will report earnings. Over the next three days, half of the largest S&P 500 Index companies, by market cap, report earnings.
To date, earnings have largely beaten expectations. Wall Street is forecasting more of where that came from. Consensus earnings estimates continue to rise at a rapid rate:
Earnings growth estimates surge amid the ongoing AI boom. (Source: A Wealth of Common Sense)
Across the S&P 500, corporate accounting offices are attributing strong earnings to AI efficiencies. The buildout of AI itself is a massive boon for hardware and infrastructure players.
Enjoy it while it lasts.
As long as corporate earnings continue to grow, market sell-offs will more likely reflect a temporary decline and trouble in one sector, like the SaaS-pocalypse back in January.
But keep an eye out: individual companies that miss earnings or fail to meet Wall Street’s rising expectations will be sold hard this week.
Until there is a breakdown in earnings, a deeper energy shock or another unforeseen meltdown, the stock market is well on track to meet our Crack-Up Boom thesis for 2026.
In Grey Swan Pro, Andrew selected a very easy way to book your own earnings on Wall Street forecasts. If you’re interested, you can upgrade your own Grey Swan membership to Pro status by clicking here.
~ Addison
P.S. Tomorrow, Grey Swan Live! returns with a new guest: Jeff Opdyke.
Jeff is a former Wall Street Journal writer who has made the move to not just heavily investing overseas, but living overseas as well. Today, he’s the editor of the Global Intelligence Letter.
We’ll talk with Jeff about how he made his move overseas, why he’s focused on international investing, and some of the top foreign markets for investors today.
