PROFIT POCKETS

In 2026Q3, S&P 500 firms are expected to show profits rising 30% Y-o-Y, great news. However, two firms, Micron and Nvidia, make up 34% of the expected increase. Add Broadcom, ExxonMobil, EchoStar, SanDisk, Marathon Petroleum, Meta, Chevron, and Valero, and the top ten are responsible for about two-thirds, and most are tech/energy related. Fortunately, the remaining 490 firms are expected to see Y-o-Y profits rise 10%. Worrying, not terrifying.