Current U.S. earnings season points to growth, defying expectations

This post was originally published on this site
© Reuters. File photo of traders working on the floor of the New York Stock Exchange shortly after the opening bell in New York© Reuters. File photo of traders working on the floor of the New York Stock Exchange shortly after the opening bell in New York

By Caroline Valetkevitch

NEW YORK (Reuters) – Earnings for S&P 500 () companies are seen increasing for the fourth quarter over a year earlier, according to IBES data from Refinitiv.

Earnings for the quarter are now expected to have risen 0.7% from the year-ago quarter, based on results from 193 S&P 500 companies and estimates for the rest.

At the start of the month, analysts had been expecting a 0.3% year-over-year decline in fourth-quarter earnings, per Refinitiv’s data.

Investors have been keeping a close eye on fourth-quarter results following a slight fall in third-quarter earnings, the first year-over-year decline for the S&P 500 since 2016.

Stronger-than-expected results recently from top technology names Microsoft (O:), Apple (O:) and Intel (O:) contributed the most to the improvement so far in the fourth-quarter forecast, while Boeing Co’s (N:) results were a drag, said David Aurelio, senior manager of equity markets research at Refinitiv.

With the fourth-quarter results, major U.S. corporations are closing the books on a lackluster year of profit growth. But bullish investors have been hoping companies can shore up confidence that 2020 will show significant profit improvement in order to keep the stock market’s rally going.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment