US earnings upgrades have now outnumbered downgrades for 21 consecutive weeks, the longest run since September 2021, according to a Citigroup Inc. index. This trend sets the stage for another strong reporting season and has boosted sentiment even as WTI prices hover above $90 a barrel and traders brace for a potential Federal Reserve rate hike. While the S&P 500 remains about 1% below its record high, analysts see robust earnings as a key driver. Keith Parker of UBS Group AG notes that expectations for next year's S&P 500 earnings have risen nearly 4% in the past two months, calling it highly unusual and a sign of strength across sectors. Willem Sels of HSBC Private Bank adds that US valuations still fail to capture the full benefits of the AI boom.
HSBC Holdings PLC
UBS Group AGCitigroup Inc.Citigroup's index is cited as showing 21 straight weeks of earnings upgrades, but no company-specific development for Citigroup itself.
