Thursday, October 13, 2016

Earnings Season Looking Grim

Earnings season started this week, and it's off to a very uninspiring start. And things could get worse before they get better. Alcoa, the traditional kickoff stock for each earnings quarter, delivered weak third-quarter results, and its stock dropped 11 percent on the day - its biggest one-day loss in five years.

S&P Global Market Intelligence warned that earnings season is likely to suffer as a result of tepid growth, which was down 1.2 perecnt for the third quarter. S&P expects the consumer-discretionary sector to report its lowest quarterly results since 2012

Overall, S&P 500 companies are expected to post their sixth straight quarter of declining earnings, according to FactSet.  Alcoa could be just the beginning.

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