Bassanese Bites: CPI Ahead – October 28 2019
Global stocks rose for the third week in a row, reflecting another (so far) better than feared US earnings season, tentative signs of stabilisation in global manufacturing and “no news is good news” progress in US-China trade talks.
As regards the Q3 US earnings reporting season, FactSet reports that 40% of S&P companies have now reported, with 80% beating earnings expectations, which is above the 5-year average of 72%. Overall, US earnings are down around 4% on year-ago levels. As would be expected, companies with greater global earnings exposure (such as energy and technology) have endured the biggest earnings slump over the past year, while domestically focused sectors like utilities, property, consumer and financial stocks have had earnings hold up relatively better.
