Big Banks Earnings In Focus for S&P 500 This Week
October 09 2023 - 6:12AM
Finscreener.org
This week marks the commencement
of the earnings season, with prominent banks and financial
institutions, including JPMorgan Chase
(NYSE:
JPM),
Wells Fargo (NYSE:
WFC),
Citigroup (NYSE: C), BlackRock
(NYSE: BLK),
and PNC Financial Services (NYSE:
PNC), set to release their reports.
A prevailing sense of pessimism
encompasses the corporate landscape regarding earnings
expectations. FactSet’s research indicates a notable trend, where
out of the 116 S&P 500 companies that have provided earnings
guidance, 74 have projected negative outlooks, while a mere 42 are
optimistic about their financial performance.
The scenario is unprecedented,
with the number of companies offering guidance reaching an all-time
high of 116, a figure unmatched since FactSet initiated this type
of tracking in 2006. The previous record, set just last quarter,
saw 113 companies issuing their earnings expectations.
Amazon Prime all set to begin
Beginning Tuesday,
Amazon (NASDAQ:
AMZN) is set to roll out
its "Prime Big Deal Days" for its esteemed Prime members. The
shopping extravaganza, spanning two days, will be available in 19
countries, including the U.S. Members are in for a treat with
enticing deals and substantial discounts on renowned brands such as Peloton,
LG, Sony, iRobot, SharkNinja, and Barbie, to name a
few.
The much-anticipated event was
unveiled in August and is scheduled a mere three months post Prime
Day 2023, which marked AmazonU+02019s pinnacle of success in the
history of Prime Days. A record-breaking 375 million products were
purchased globally during the event, translating to a whopping $2.5
billion saved on deals and discounts, as reported by Amazon.
Notably, the inaugural day of this yearU+02019s Prime Day event set
a new benchmark as Amazon’s highest-grossing sales day
ever.
Employment data remains strong in the U.S.
The U.S. economy is on an
upswing, boasting the creation of over 2.3 million jobs this year,
a sub-4% unemployment rate, and nearly 10 million job vacancies
awaiting applicants. Yet, with such promising employment statistics
that typically signify economic prosperity, why does a considerable
segment of the population harbor a grim outlook on the economic
landscape?
The culprit is the incessant rise
in the cost of living. From skyrocketing rents to the escalating
prices of food, fuel, and household appliances, inflation is the
invisible hand eroding the public’s economic optimism. Although the
yearly inflation rate is on a downtrend, the persistent elevation
in prices is a financial strain that many find intolerable. This
inflationary pressure casts a shadow on the otherwise positive
economic indicators, making the financial wellbeing of many feel
precarious, if not dire.
The Bureau of Labor Statistics
(BLS) is set to release the September Producer Price Index (PPI) on
Wednesday, offering a glimpse into inflation from the perspective
of manufacturers and wholesalers. The PPI is often considered a
precursor to consumer price trends, as the costs incurred by
manufacturers typically trickle down to the consumer.
On Thursday, attention will shift
to the release of the latest Consumer Price Index (CPI). According
to forecasts by the Federal Reserve Bank of Cleveland, consumer
prices are estimated to have increased by 0.4% in the past month
and 3.7% year-over-year. When excluding the often fluctuating food
and energy costs, the core prices are expected to reflect a similar
0.4% rise from August and a 4.2% increase
year-over-year.
If these projections hold true,
it would represent the most modest annual growth since September
2021, indicating a possible easing in the inflationary pressures
that have been a point of concern for both consumers and
policymakers alike.
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