A large semiconductor company released very good earnings yesterday evening, beating revenue and earnings estimates.
One company CAN have a rather large impact on earnings season and therefore the capital markets. Much of the tone is set early in reporting season, and when a very large company, within a sector of our economy reports strong earnings, it often sets the tone for the capital markets and earning season.
We are withholding the name of the large company we are talking about as not to show a bias. It is safe to say last quarter this company set the tone by beating estimates on both sales, and earnings and raised expectations for this quarter. Again, they beat their prior guidance giving a “jolt of java” so to speak to the capital markets.
Just as a large company can spur, a peer can sour. It is never 100% clear.
Have a Good day!
JK