The big things you need to know:

• First, 3Q25 reporting season has gotten off to a strong start on beat rates for the major indices, but we are continuing to see deterioration in the rate of upward EPS estimate revisions for the S&P 500, the Russell 2000, the biggest market cap names in those indices, and the rest of both indices when their top weights are excluded – something we continue to see as a challenge for performance if it persists.
• Second, we run through the main macro takeaways we found in our review of last week’s S&P 500 earnings calls. The tone on the overall macro, consumer and tariffs came across as mixed, with a number of companies expressing optimism about improvements / stabilization underway or potentially coming into view.
• Third, other things that jump out in our updates this week include a new study we’ve published on the relationship between ROEs and P/Es in the major Small, Mid and Large Cap indices.