BlackRock warns of US earnings stagnation, remains bullish on AI, Japan

NEW YORK, Oct 23 - Investors looking toward U.S. corporate earnings growth to revive the rally in the benchmark S&P 500 may be disappointed as inflation remains volatile, strategists at the BlackRock Investment Institute warned in a note Monday.

"U.S. corporate profits have plateaued along with the economy," the firm noted."Broad equities have started to adjust to the new regime of greater volatility, but don’t fully reflect the macro damage we expect." Among the risks it sees for equities are the loss of company pricing power as the pandemic-era mismatch in spending between goods and services normalizes, and a tight labor market pushing wages up and keeping inflation above the Federal Reserve's 2% target rate.

Companies in the S&P 500 are expected to post earnings growth of 1.3% in the third quarter compared with the same time last year, according to LSEG IBES. That would mark the first pickup after three quarters of flat or declining earnings growth.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

BlackRock warns of US earnings stagnation, remains bullish on AI, JapanExplore stories from Atlantic Canada.
La source: SaltWire Network - 🏆 45. / 63 Lire la suite »

Stock market today: Wall Street drifts lower as pressure rises from the bond marketNEW YORK (AP) — Wall Street is drifting lower in early trading as pressure from the bond market continues to build. The S&P 500 was down 0.5% early Monday. The Dow lost 171 points, and the Nasdaq composite was off 0.6%.
La source: SooToday - 🏆 8. / 85 Lire la suite »

A Shrinking $1.3 Trillion Securities Market Is Bad News for the Economy(Bloomberg) -- For a fleeting moment this month, investment bankers in leveraged finance — the lucrative lending that oils the wheels of M&A and feeds the...
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

A Shrinking $1.3 Trillion Securities Market Is Bad News for the EconomyAbout 40% of issuers in this crucial area of corporate finance are yet to price a new deal this year. That’s an unwelcome signal for Wall Street — and business.
La source: BNNBloomberg - 🏆 83. / 50 Lire la suite »

US futures sink after 10-year Treasury yield tops 5%: Stock market news todayThe 10-year Treasury yields passed a key milestone, underlining the 'new normal' of higher-for-longer rates.
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »