Earnings Season Begins, Testing if Market Rally Broad-Based or Megacap-Driven
• Earnings season kicks off Friday, will test if rally is broad-based or concentrated in a few mega cap stocks • Consensus forecasts 3.2% year-over-year earnings growth for S&P 500 companies • Top 10 S&P 500 companies expected to drive 32% of index's profit growth • Rotation into cyclicals hoped for as growth slows for megacaps like Nvidia • Signs of rotation would support narrative of economy's second wind lifting more stocks