NEW YORK - A resilient economy and strong consumer demand are expected to fuel a slight rise in third-quarter U.S. earnings, which could throw a lifeline to a stock rally that has stumbled in recent months.
After a rough September for stocks,"we need some good news" from earnings season, said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management. Friday's monthly U.S. jobs report for September was the latest evidence of economic strength. Employment rose by the most in eight months, suggesting consumer demand could stay intact for now.
Even after recent declines, the S&P 500 index is trading at nearly 18 times forward 12-month earnings estimates, exceeding its long-term average of 15.6 times, according to LSEG data.