LIVE MARKETS- Mixed response to early US earnings reports
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MIXED RESPONSE TO EARLY US EARNINGS REPORTS
The third-quarter US earnings season is under way now with the release this morning of results from some key banks including JPMorgan JPM.N and Goldman Sachs GS.N.
Shares of the banks that had reported are mixed, with Citigroup C.N down nearly 4% even as the bank beat Wall Street estimates for third-quarter profit. All three of the major US indexes are down modestly in afternoon trading.
Analysts were expecting S&P 500 .SPX companies as of Friday to increase earnings in the third quarter by 30.6% from a year ago, with year-over-year financials .SPSY earnings seen up 4.9%, according to LSEG.
S&P 500 revenue for the quarter was seen up 11.8% from a year ago.
"Following big positive surprises in the last two quarters, healthy beats are the status quo and may not be enough to drive stocks higher," BofA Securities strategists wrote in a note this week.
Investor focus will largely be on AI-related growth, with tech .SPLRCT company earnings expected to grow 66.5% in the quarter from a year ago and communication services .SPLRCL earnings seen up 47.8% year-over-year. Energy .SPNY earnings, meanwhile, are seen up 123% year-over-year, based on LSEG data.
(Caroline Valetkevitch)
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