Maybe the most important financial story of the coming week will be the earnings report from several big energy companies, including Exxon Mobil and Chevron. Falling oil prices have decimated the energy industry this year, so this week will be a chance to see how bad the carnage has been.
According to FactSet, the energy sector is reporting the largest year-over-year decline in earnings and revenues of all 10 S&P 500 industry sectors. Earnings among energy companies are down a whopping 54.4 percent on a year-over-year basis, while revenue has fallen 38.2 percent.
This week's numbers could put a stake into the notion that we are in an earnings recession. With 187 S&P 500 companies having reported second-quarter results, blended earnings, which combine actual results with projected estimates, are now sitting at 2.2 percent lower.