Citigroup strategists said that, driven by technology stocks, the share of US companies whose profits exceeded expectations in the third quarter is expected to be higher than in the second quarter. According to the team led by Richard Schrath and David Chow, their model predicted 66.2% of the Russell 1000 components to profit more than expected, compared to 60.9% in the second quarter. The technology sector is also the biggest contributor, exceeding expectations by more than 88%; followed by the healthcare sector and the industrial sector. The strategist believes that profit benefits will be concentrated in large-cap stocks. Analysts expect the third-quarter earnings of the S&P 500 index constituent stocks to increase by about 30% year-on-year, driven by higher profit expectations in the energy and technology sector.

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