Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Goldman Sachs Predicts Disappointing Q3 Earnings Season for S&P 500

Monday, October 10, 2016 8:17
% of readers think this story is Fact. Add your two cents.

(Before It's News)

RarningsGoldman Sachs expects a weak third quarter earnings season this year from S&P 500 companies, which when combined with an equally weak Q4, will contribute to a 2% decline in the S&P 500 index by the end of 2016.

Chief U.S. Equity Strategist David Kostin wrote in a note to clients:

“Variables that determine earnings surprises – changes in U.S. economic growth, interest rates, oil price, the dollar, and EPS [earnings per share] revisions – suggest a below-average share of firms will report positive earnings per share surprises (43 percent vs. 46 percent). We see a weak third-quarter reporting season coupled with negative fourth-quarter EPS revisions pushing stocks 2 percent lower to our year-end target of 2,100.”

goldman-spx-earnings
Source: Goldman Sachs

Kostin noted that bottom-up forecasts suggest an adjusted EPS decline of 1% from last year in the third quarter. He also adds that while most of Wall Street has reined in their Q3 estimates, that Q4 estimates for many firms will also need to be taken down a few notches.

Finally, Goldman predicts that defensive, yield-oriented stocks will pick up steam as the quarter progresses, while cyclicals will lag. The third quarter earnings season unofficially kicks off with Alcoa’s results before the bell tomorrow.

SPY-2016-1010

SPDR S&P 500 ETF Trust (NYSE:SPY) shares rose $1.57 (+0.73%) to $216.61 in Monday morning trading. Year-to-date, the largest ETF that tracks the benchmark S&P 500 index has gained 6.25%.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.