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October Signals The Start Of Corporate Earnings Season

ByJesse Smythe
Published 10/14/2012, 10:25 PM
Updated 07/09/2023, 06:31 AM
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Stocks slipped on Friday as investors fretted over what is expected to be a weak corporate earnings season.

Investors failed to be cheered even by data showing Americans were the most upbeat they have been in five years, as well as record quarterly profits at JPMorgan Chase and Wells Fargo. As a result, U.S. stocks posted their worst weekly decline since June.

“There’s a lot of trepidation about earnings season,” said Michael Sawyer, chief investment officer of Forex Capital Management in Sydney, Australia.

“The predictions have been for weaker earnings, and we’ve heard a few companies saying things are slowing down a little bit in various places, especially overseas.”

Weak global demand has heightened concerns over the prospects for corporate earnings growth. As a group, S&P 500 companies’ quarterly earnings are expected to fall 3 percent from a year ago, according to Thomson Reuters data, marking the first decline in three years.

The Dow Jones industrial average ended up 2.46 points, or 0.02 percent, at 13,328.85. The Standard & Poor’s 500 Index dipped 4.25 points, or 0.30 percent, to 1,428.59. The Nasdaq Composite Index eased 5.30 points, or 0.17 percent, to 3,044.11. All three indexes were down more than 2 percent for the week.

“Bank shares as a group have had a nice move (up) this year so far,” said Jesse Smythe, Head of Sales at FXAsia in Hong Kong. “Guidance is cautious so people are taking money off the table.”

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