Market-implied growth seen from the megacap technology stocks is good news for the broader market, according to Citi U.S. equity strategist Scott Chronert.


“We got continued strong growth out of the mega-cap growth part of the market. When you look at the ‘Mag 7’ as an example, we continue to see the earnings growth expectations move higher. The other 493 are stabilizing, showing some early signs of improvement,” Chronert said Tuesday on CNBC’s “Squawk on the Street.” “Under the surface, when you look at it at a single stock level, we’re starting to see more and more S&P 500 companies set up for positive growth dynamic as this year unfolds.”

Chronert said the path of first-quarter earnings season still looks strong and that Citi’s year-end estimate of S&P 500 earnings of $245 per share “shouldn’t be a problem” to reach despite consensus estimates being below that level. He noted that there is still “fraying around the edges” particularly when it comes to the lower-end consumer and other weaker pockets of the market, such as debt-laden companies in the S&P 500.
“We have to be careful of how the impact of Fed policy is translating to Main Street as opposed to what we think is happening in Wall Street,” Chronert said. Read more: https://aiapkpro.com/dow-closes-slightly-higher-and-posts-longest-winning-streak-since-december-live-updates/