Spiking Q3 EPS

S&P 500 Q3 estimated bottom-up operating EPS shot 5% higher with results for the first month of reporting (Chart 1). This pop is much more impressive than the 2% gain we saw in July (after the first month of reporting for Q2). The current Q3 estimate of $70.27 is about a percent better than the last reading prior to the “Liberation Day” announcement. The tariff-induced bottom-line reckoning feared this spring has yet to materialize. We’d surmise that the still L-shaped EPS snail-trail for Q4 will bounce higher, too, come January.