Earnings have been weak, but better than expected
The Q3 earnings season has been a generally mixed bag.
The other side: S&P 500 earnings are still on track to decline for the third consecutive quarter, with overall profits expected to fall about 2.7% from a year earlier, the sharpest decline since 2016, according to FactSet.
- The U.S.-China trade war is again rearing its head as companies that make 50% or more of their revenue overseas are showing especially weak totals.
- Companies also blamed the stronger U.S. dollar and slower global economic growth, FactSet noted.
What they're saying: “Earnings … are truly better than expected,” Peter Vanderlee, a portfolio manager at ClearBridge Investments, told WSJ.
- “As a result, there hasn’t been a moment where you would say, ‘Look, it is upon us. A recession is nearing.’”