First Quarter Earnings Drove Sector ETFs

I’m a former stock analyst responsible for publishing on communications services and information technology stocks. While I don’t miss covering multiple earnings calls in a day, I appreciate how these quarterly updates impact the returns of equity ETFs.

First-quarter calendar 2024 earnings season ended up better than expected. S&P 500 companies generated 5.7% year-over-year earnings growth, as of May 17, according to FactSet. This helped the broad market index ETFs to climb higher and gain in popularity.

Breaking Down Sector Earnings

“Driving that strength were communications services, consumer discretionary, information technology and utilities,” explained Christine Short, head of research at Wall Street Horizon, a TMX Company. Mega-cap growth stocks delivered in the first quarter after a strong 2023.