Technology sector with strong 2Q results
Rating Changes: Amazon.Com, Broadcom, Novo Nordisk, Ryanair, Vinci, Edwards Lifesciences
In the current reporting season for 2Q, there have been positive earnings surprises at 79% of companies in the USA so far. The highest share of positive earnings surprises was achieved by the technology sector (92%), as well as the consumer sector (cyclical and non-cyclical consumption, 88% each) and the healthcare sector (88%). Eight out of a total of eleven sectors achieved year-on-year profit increases. Due to profit declines in the energy, commodities and healthcare sectors, 2Q earnings are expected to decline by -5.2% (y/y).
In Europe, there were significantly fewer positive earnings surprises in the 2Q earnings season than in the US, with a share of 55%. Net profits are expected to fall by -4.8% (y/y) in Europe in 2Q and, unlike the US, will continue to decline for the next three consecutive quarters. We therefore expect the outperformance of US equities to continue over the medium term. After significant gains in the global stock market index since the beginning of the year, we expect the stock market to move sideways in August.
Amazon.Com: Revenue up +11.0% (y/y) in 2Q, AWS cloud expanded to include AI applications
Microsoft: Azure revenue +26% y/y, high profit increase
DHL Group: Online trade grows at below-average rate, global freight volumes shrink