Thursday, 3 October 2024 Reading time : 2 minutes

Wall Street ist off to a weak start to the final quarter. The slowdown follows a strong performance in September: The S&P 500 rose by 2.1% (total return), reaching a new record high at the end of the month – September is traditionally the weakest month of the year for equity markets. 

In the coming weeks, investors will turn their attention to earnings of US stock market heavyweights. Equity analysts are once again expecting earnings growth for the third quarter, according to an analysis by data provider Factset. On an aggregate basis, they are forecasting earnings growth of 4.6% for the S&P 500 companies compared with the same quarter last year. If correct, this would be the fifth consecutive quarter of earnings growth. 

Expectations remain high for the big tech companies. Analysts are forecasting double-digit earnings growth for both the technology and communications sectors. The so-called 'Magnificent Seven' – Nvidia, Microsoft, Alphabet, Amazon, Meta Platforms, Apple and Tesla – fall into these two categories. 

However, the undisputed dominance of the tech giants on the stock markets has waned over the past quarter as a look at the performance of individual sectors shows. The communications sector gained 1.7% between July and September, while the technology sector advanced 1.6%. Both sectors clearly underperformed the S&P 500 (+5.9%). In contrast, utilities (+19.4%) and real estate (+17.2%) were in demand. Consumer staples (+9%) also outperformed the market. 

Barrier Reverse Convertibles on US Technology Stocks
12.50% p.a BRC on Microsoft, Amazon, Alphabet and Meta Platforms
Barrier: 60%
Valor: 135 806 179

12.00% p.a BRC on Microsoft, Alphabet and Nvidia
Barrier: 50%
Valor: 135 806 183

Barrier Reverse Convertibles on US Consumer Staples
9.00% p.a BRC on Costco, Walmart and Target
Barrier: 62%
Valor: 135 806 180

8.50% p.a BRC auf Coca-Cola, PepsiCo and Starbucks
Barrier: 60%
Valor: 135 806 046

Indicative terms

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