Wall Street concluded its trading week on a positive trajectory, with all three major US benchmarks extending gains ahead of the third-quarter reporting season, set to commence next Tuesday. The S&P 500 closed 0.6 per cent higher, with the real estate sector leading broad market strength, reflecting significantly elevated expectations for corporate performance during the September quarter.
Veteran strategist Ed Yardeni noted the third quarter is “shaping up to be another blockbuster,” with analysts anticipating all 11 S&P 500 sectors to report positive year-over-year growth in both revenues and earnings – a rare feat achieved only once before in 25 years. FactSet projects S&P 500 companies will deliver earnings growth of 29.6 per cent, potentially surpassing 35 per cent based on historical trends where actual results often exceed estimates. Major US banks are also poised for significant stock-trading hauls, collectively expected to unveil nearly $US19 billion ($27 billion) in revenue for the quarter.
In corporate news, OpenAI, a leading artificial intelligence research and deployment company known for advanced AI models, is reportedly on track to exceed $US70 billion in annualised revenue by year-end, driven by enterprise expansion. Conversely, Apple shares fell following reports of reduced component orders for its latest iPhones due to weaker demand. Lumentum Holdings, however, is seeing its optical components “completely sold out” through early 2029, fuelled by demand from AI data centres. Delta Air Lines lowered its full-year earnings outlook due to elevated jet fuel prices. Locally, ASX 200 futures are pointing higher, while global miner Glencore is eyeing an ASX 100 entry amid renewed merger ambitions with Rio Tinto. MA Financial-backed Redcape also acquired a beachfront pub in NSW for $40 million.
