Retailing giant Amazon.com Inc (AMZN.O) is scheduled to report 19Q3 earnings after the close on Oct. 24. The company known for industry disruption is expected to increase third quarter ad-revenue 71.7% from the prior year and to far outpace the 14.2% outlook for the S&P 500 media entertainment industry group. Analysts also anticipate that Amazon will outperform the S&P 500’s interactive media & services industry (19.5%), which consists of names such as Alphabet Inc (GOOGL.O, GOOG.O), Facebook Inc (FB.O), and Twitter Inc (TWTR.N).

Netflix shows that it’s not enough to beat earnings. The media giant beat 19Q2 earnings with an EPS of $0.60 vs. the $0.56 per share estimate; however, failed to deliver on a key performance indicator. Net subscriber additions for the quarter of 2,699 million missed expectations by 47.2%. As a result, Netflix shares have fallen 16%. Now that the stage has been set, investors eagerly await the fate of the remaining members of F.A.N.G., Facebook Inc (FB.O), Amazon.com Inc (AMZN.O), and Alphabet Inc (GOOGL.O, GOOG.O), which start to report this afternoon with Facebook. Exhibit 1: F.A.N.G. YoY Growth Rates Analysts

The second quarter of 2019’s earnings season has arrived and analysts have become increasingly bearish. Analysts currently estimate S&P 500 year-on-year (YoY) 19Q2 earnings will decline 0.1%; however, a year ago expectations for the index were for an increase of 10.6%. Anticipation of margin compression is one of the reasons for the decline in earnings expectations. Exhibit 1: S&P 500 YoY 19Q2 Earnings Estimate History Part of the reduction in growth is due to a stronger than expected 18Q2 earnings (80.2% of companies beat estimates), which led 19Q2 YoY estimates to fall to 9.2% by Oct. 1, 2018. It is

The Global Industry Classification Standard (GICS) sectors are about to undergo a major reshuffle that will impact the Consumer Discretionary, Information Technology, and Telecommunication Services sectors. Combined, these three sectors account for over 40% of the S&P 500’s market cap. The change impacts a large portion of the index and unlike the previous change that broke out the Real Estate sector from the Financials sector, this reclassification is not clean. Exhibit 1: Comparison of S&P 500 New to Current GICS Sectors Source: I/B/E/S On Monday, Sep. 24, 2018, a new GICS sector, Communication Services, will be implemented. The new sector

Nearly two thirds of S&P 500 companies (65%) have reported 2018 Q2 earnings and the quarter is on track to set new records. Companies are beating high earnings expectations at a record rate and earnings growth is expected to be the strongest second quarter since 2010 Q2. The quarter may also see the first trillion dollar company with Apple Inc. (AAPL.OQ) shares on the rise following their 2018 Q2 results. Exhibit 1: S&P 500 18Q2 YoY Earnings Expectation History In a typical quarter, analysts become more bearish as the earnings season approaches, making downward revisions to earnings estimates. However, the