Analysts expect third-quarter S&P 500 earnings to have fallen 21 per cent compared with the year-ago quarter, a big improvement from second-quarter’s 30.6 per cent drop that was most likely the low point for earnings this year. — Reuters pic
Earnings reporting will get rolling next week with results from some of the big US banks, likely impacted by near record low interest rates and the pandemic-induced recession. JPMorgan & Co and Citigroup both release results on Tuesday. That could weigh on fourth-quarter guidance and overshadow some of the better-than-expected results, he said.
Companies that have reported so far on the quarter have not seen much cheer from investors, despite their much stronger-than-expected results, some strategists have noted. Among the sectors, earnings from the S&P 500 energy sector are expected to have declined the most, with a projected 115 per cent year-over-year drop, based on Refinitiv’s data.