Wall Street Week Ahead: U.S. Earnings Improvement Expected, but Still a Weak Quarter | Investing News

NEW YORK (Reuters) – While good business news has been in short supply, investors may take slight comfort in coming weeks from U.S. corporate earnings that are likely to be bad, but not as bad as they have been.

Analysts expect third-quarter S&P 500 earnings to have fallen 21% compared with the year-ago quarter, a big improvement from second-quarter’s 30.6% drop that was most likely the low point for earnings this year because of coronavirus-fueled lockdowns, according to IBES data from Refinitiv.

Earnings reporting will get rolling next week with results from some of the big U.S. banks, likely impacted by near record low interest rates and the pandemic-induced recession. JPMorgan & Co.

and Citigroup

both release results on Tuesday.

(Graphic: S&P 500 Q3 earnings look bad, but not as bad as Q2 – https://graphics.reuters.com/USA-STOCKS/azgvoaoyzvd/chart.png)

Overall, S&P 500 quarterly results tend to beat analysts’ cautious expectations, and they could do

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U.S. earnings improvement expected, but still a weak quarter

By Caroline Valetkevitch

NEW YORK (Reuters) – While good business news has been in short supply, investors may take slight comfort in coming weeks from U.S. corporate earnings that are likely to be bad, but not as bad as they have been.

Analysts expect third-quarter S&P 500 earnings to have fallen 21% compared with the year-ago quarter, a big improvement from second-quarter’s 30.6% drop that was most likely the low point for earnings this year because of coronavirus-fueled lockdowns, according to IBES data from Refinitiv.

Earnings reporting will get rolling next week with results from some of the big U.S. banks, likely impacted by near record low interest rates and the pandemic-induced recession. JPMorgan & Co. <JPM.N> and Citigroup <C.N> both release results on Tuesday.

(Graphic: S&P 500 Q3 earnings look bad, but not as bad as Q2 – https://graphics.reuters.com/USA-STOCKS/azgvoaoyzvd/chart.png)

Overall, S&P 500 quarterly results tend to beat analysts’ cautious

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PIA’s Roosevelt Hotel in New York to shut down due to weak economy

ISLAMABAD, Oct 9 (Reuters)The Roosevelt Hotel in New York’s Manhattan owned by Pakistan International Airlines (PIA) PIAa.KA announced that it will shut down for good by the end of this month.

“Due to the current economic impacts, after almost 100 years of welcoming guests to The Grand Dame of New York, The Roosevelt Hotel, is regretfully closing its doors permanently as of Oct. 31, 2020,” the hotel said on its website.

A PIA official also confirmed the decision on Friday.

With more than $4 billion in accumulated losses, PIA was already struggling financially when flights were grounded in March because of the pandemic. Just as it resumed operations in May, a domestic PIA flight crash in Karachi killed 97 of 99 people on board.

An initial inquiry pointed to a number of safety failures, and sparked a disclosure from authorities that nearly a third of PIA’s pilots may

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Boeing’s Stock May Sink Further Amid Weak Growth Outlook (NYSE:BA)

Boeing’s (BA) stock has struggled in 2020 due to the coronavirus pandemic, and now the company is saying that demand for its planes may be impacted for the next decade. If that’s the case, then current consensus revenue and earnings estimates may be too high.

Additionally, some traders are now betting that Boeing stock declines in the weeks ahead, with no upside from its current price of $165 on Oct. 8. Meanwhile, the technical chart also suggests that the stock is likely to struggle. You can track all of my articles on Seeking Alpha on this Google spreadsheet.

Weak Growth Outlook

Analysts see Boeing losing about $9.65 a share in 2020, which is down from a peak of $16.00 per share in 2018. Analysts estimate that earnings recover in 2021 to $3.93 and then $7.61 in 2022. Meanwhile, revenues are expected to rise to $81.7 billion and $88.2 billion in

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Weak Employment Data, Savings Out Of Bullets

Personal income fell -2.7% in August. Still, consumer spending rose 1.0% M/M. What Gives?

The economy is still very much an employment story. While the official U3 unemployment rate fell to 7.9% from 8.4%, the underlying data was, simply put, “ugly!”

“Excess” Savings

Last week, I discussed the theory that the “excess” savings from the stimulus packages (one-time stimulus checks and the now expired supplemental $600/week in unemployment benefits) would carry the economy through Q4. No Way!

The pre-virus savings level was $1.2 trillion. The CARES Act stimulus ballooned savings to $6.40 trillion in April (everything was closed; nothing to spend it on except toilet paper, bottled water, and some frozen entrees). Then the re-openings began. In May, savings fell by -$1.9 trillion. In June, by -$1.0 trillion. Then it levelled off. July was

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Asian shares set for bouncy session after Wall Street gains, weak dollar

WASHINGTON (Reuters) – Asian equities were poised for a bouncy session on Thursday after U.S. stocks posted a second consecutive quarter of gains and safe-haven assets, including the dollar, were mixed.

FILE PHOTO: A man wearing a protective face mask following an outbreak of the coronavirus disease (COVID-19) walks past a screen displaying the world’s markets indices outside a brokerage in Tokyo, Japan, March 17, 2020. REUTERS/Issei Kato

Global investors spent the session digesting the rising number of COVID-19 cases and a chaotic U.S. presidential debate, while taking in better-than-expected U.S. private jobs data on the last day of a volatile quarter.

All three major indexes surged after U.S. House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin expressed hope for a breakthrough in partisan stimulus negotiations.

But they pared gains after Senate Majority Leader Mitch McConnell warned the sides remain “far apart” in their talks.

“Between the

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GLOBAL MARKETS-Asian shares set for bouncy session after Wall Street gains, weak dollar

By Katanga Johnson

WASHINGTON, Sept 30 (Reuters)Asian equities were poised for a bouncy session on Thursday after U.S. stocks posted a second consecutive quarter of gains and safe-haven assets, including the dollar, were mixed.

Global investors spent the session digesting the rising number of COVID-19 cases and a chaotic U.S. presidential debate, while taking in better-than-expected U.S. private jobs data on the last day of a volatile quarter.

All three major indexes surged after U.S. House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin expressed hope for a breakthrough in partisan stimulus negotiations.

But they pared gains after Senate Majority Leader Mitch McConnell warned the sides remain “far apart” in their talks.

“Between the U.S. presidential elections in a little over a month, uneven economic data and uncertainty over the COVID-19 impact … we may just see a drift in equity market pricing into Nov.

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TSX Snaps 3-day Winning Streak, Ends Weak On Virus Concerns

(RTTNews) – The Canadian stock market ended on a negative note on Tuesday as stocks turned easy after three successive days of gains, with investors turning cautious and looking ahead to the presidential debate in the U.S., set to take place later in the day.

A surge in coronavirus cases that forced the Canadian government to impose lockdown restrictions on pubs and restaurants, raised concerns about growth. Lower crude oil prices hurt as well.

The benchmark S&P/TSX Composite Index ended down 31.29 points or 0.19% at 16,211.52.

Energy and financial shares were the prominent losers. The Capped Energy Index went down by as much as 4.26% as several stocks in the section suffered sharp losses.

The Capped Financials Index slipped 1.42% as key bank stocks ended notably lower.

But for strong gains posted by information technology shares and select shares from the materials section, the market may well have ended

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Weak Demand Now the Bane of Once-Storming Aussie Housing Market | Investing News

BENGALURU (Reuters) – Australian housing market activity won’t recover from the recent slowdown for at least a year as dwindling household incomes and soaring unemployment hammer demand, causing home prices to fall this year and next, a Reuters poll of analysts showed.

Now in its first recession in three decades, Australia’s economy is expected to recover slowly even though the spread of the coronavirus is largely under control and most businesses have reopened. Still, policymakers expect unemployment to rise to about 10% from 6.8% in August.

That forecast comes despite aggressive monetary policy easing from the Reserve Bank of Australia, which has so far chopped its key interest rate to an all-time low of 0.25% and launched a bond-buying campaign to hold market yields down.

The Sept. 16-28 poll of 12 property analysts showed average home prices would fall 4.5% this year and another 2.8% next. The market is forecast

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