U.S. companies face biggest decline in profits since COVID-19 shutdowns

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 55 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 92%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Companies on the S&P 500 index are expected to report a 6.8 per cent decline in first-quarter earnings compared with the same period a year earlier, according to estimates

. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know.

That would be the biggest fall since the more than 30 per cent plunge in the second quarter of 2020, which came as the rapid spread of COVID-19 led to a widespread economic shutdown. “When you look at the cost of wages and the cost of capital, margins are coming under a fair amount of pressure,” says Jack Ablin, chief investment officer at Cresset Asset Management LLC.

Falling interest rate expectations have boosted the appeal of some of the biggest technology companies, a development that has masked a more lacklustre performance from the wider stock market. More companies than usual signalled weakness in the first quarter, with 78 issuing negative guidance on their earnings per share – an indication that management expects to miss analysts’ forecasts – exceeding the five-year average by 37 per cent. The semiconductors industry, a part of the broader information technology sector, provided 11 such warnings.

New orders for durable goods in the U.S. fell for the second month in a row in February, while analysts had expected a rebound in buying.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. companies face biggest decline in profits since COVID-19 shutdownsFirst\u002Dquarter earnings for companies on the S\u0026amp\u003BP 500 index are expected to fall 6.8% as inflation squeezes margins. Find out more.
Source: financialpost - 🏆 7. / 85 Read more »

The world's largest silver producing companies in 2022 - reportA roundup of all the mining news in the precious metals sector with a variety of company news, mining sector analysis, newsletter writer insights and executive interviews.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Why the U.S.’s big companies keep getting biggerToday, all of the top five U.S. companies are technology businesses and, together, they represent more than 20 per cent of the stock market – the highest concentration since the 1960s
Source: globeandmail - 🏆 5. / 92 Read more »

11 U.S. stocks with healthy economic performance and solid price momentumWe are looking for companies that prioritize profitability, while accounting for risk
Source: globeandmail - 🏆 5. / 92 Read more »