Wall Street Week Ahead: Overall, S&P 500 quarterly results tend to beat analysts’ cautious expectations, and they could do that even more than usual this reporting season, strategists said
Overall, S&P 500 quarterly results tend to beat analysts’ cautious expectations, and they could do that even more than usual this reporting season, strategists said. In a break from the typical trend, guidance from U.S. companies has been more positive than negative and estimates have been improving in recent weeks to reflect more upbeat guidance.
That could weigh on fourth-quarter guidance and overshadow some of the better-than-expected results, he said. Earnings season comes as the nation also prepares for the Nov. 3 U.S. presidential vote, which lands in the middle of one of the heaviest weeks of profit reporting. That, along with focus on prospects for additional fiscal stimulus from Washington, could overshadow earnings news.
“Firms that reported Q3 already have declined 1% on average despite the big beats, suggesting the bar is much higher for investors,” UBS strategist Keith Parker wrote in a note.
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