Lots of big things have happened over first, second and third quarters of this year: persistent inflation, higher interest rates from the Federal Reserve, the return of student-loan payments, fluctuating recession anxieties, relentless prophesizing over AI and a tech-stock explosion that helped carry the S&P 500 Index
\n SPX
\n higher. <\/p>\n
\n
But as the third-quarter corporate earnings reporting season arrives this week after a recent pullback in stocks and dimming profit expectations, some say investors are still too optimistic. And others say Wall Street is waiting for something new to drive a more decisive market move, as downturn fears recede but higher-for-longer costs become a new normal for shoppers and businesses. <\/p>\n
\u201cThey want that next big thing, and we haven\u2019t had it,\u201d said Jay Woods, chief global strategist at Freedom Capital Markets. \u201cAI was the next big thing. That was the whole story the first half of the year. That story has changed, and now they want to see the results from it.\u201d<\/p>\n
Third-quarter per-share profit is set to fall 0.3% for the 500 companies in the S&P 500 Index collectively, according to FactSet. That would mark the fourth straight quarter of declines. While the index is up 12.2% so far this year, it retreated in August, largely amid concerns about sustained higher borrowing costs. <\/p>\n
With JPMorgan Chase & Co and Delta Air Lines Inc. leading off the third-quarter earnings season, Wall Street will get a deeper sense of how those concerns are sitting with customers, after two years of price increases and \u201crevenge\u201d spending. Nike Inc.
\n NKE,
\n +1.38%<\/bg-quote>
\n last month said consumers were \u201cresilient,\u201d Woods noted. With the holiday shopping season approaching, results in the weeks ahead will offer a more detailed report card of that resilience. <\/p>\n\u201cLet\u2019s see how resilient they are when they have to pay off their student loans, when they\u2019re moving out of the house and they get that first mortgage at 8%,\u201d Woods said.<\/p>\n
Earlier this year, AI ambitions boosted stocks like Nvidia Corp.
\n NVDA,
\n +2.40%<\/bg-quote>
\n and Microsoft Corp.
\n MSFT,
\n +2.47%<\/bg-quote>
\n \u2014 companies that are big enough to move the broader markets on their own. But some Wall Street analysts have started to poke around at the costs of big tech\u2019s AI investments, and the short-term impact on profits. <\/p>\nRichard Saperstein, chief investment officer at Treasury Partners, said investors should expect a \u201csolid\u201d earnings season. But he said that Wall Street\u2019s earnings expectations were too high for the rest of this year and next year. And he said a whole lot will have to go right to make markets happy. <\/p>\n
\u201cThe market right now is priced for perfection, as there are elevated expectations for a bullish slowdown where the economy slows enough to bring down inflation, but not enough to trigger a recession,\u201d he said in emailed commentary. <\/p>\n
\u201cIt is very hard to see how the Fed and economy will thread this needle,\u201d he continued, \u201cand we believe that markets expect everything to fall into place when it comes to inflation, the economy and rates, and that is a very high bar.\u201d<\/p>\n
This week in earnings<\/h2>\n
Beverage and snack giant PepsiCo Inc.
\n PEP,
\n +0.12%<\/bg-quote>
\n reports during the week, as analysts raise questions about the company\u2019s ability to grow sales volumes \u2014 or a measure of actual food and drinks sold \u2014 and put up sales gains this year after last year\u2019s price increases. Domino\u2019s Pizza Inc.
\n DPZ,
\n -5.97%<\/bg-quote>
\n reports after executives this summer warned of more difficult trends in its delivery business. Walgreens Boots Alliance Inc.
\n WBA,
\n -1.67%<\/bg-quote>
\n also reports, after the departure of its chief executive. UnitedHealth Group Inc.
\n UNH,
\n +1.66%<\/bg-quote>
\n also reports. <\/p>\nTwelve S&P 500 companies, including three Dow members, are set to report during the week the week ahead, according to FactSet. <\/p>\n
The calls to put on your calendar<\/h2>\n
Big bank earnings:<\/strong> Higher interest rates can be a double-edged sword for banks. One one hand, they boost the income banks take in on loans. On the other, they discourage customers from taking out the loans that banks depend on to make money. <\/p>\nThis summer, investors clearly responded to the latter, sending bank stocks lower on rising rates and higher bond yields, which prices of debt and other securities held by banks. The higher rates have rippled through the economy, putting mortgages and car loans out of reach for some consumers. <\/p>\n
Against that backdrop, JPMorgan
\n JPM,
\n +1.54%<\/bg-quote>,<\/span>
\n Citigroup Inc.
\n C,
\n +1.73%<\/bg-quote>
\n and Wells Fargo & Co.
\n WFC,
\n +0.99%<\/bg-quote>
\n reports results on Friday. JPMorgan, as usual, will set the stage for the quarter, with Wall Street focused on Chief Executive Jamie Dimon\u2019s big-picture take on the economy and the consumer. While the bigger banks have more at their disposal to absorb any shocks to the economy, the quarterly financials and forecasts could reflect other things investors have been worried about: Increased capital requirements, remote work\u2019s impact on commercial real estate, geopolitical friction and efforts to fatten up reserves in case a downturn hits. Wells Fargo, meanwhile, is trying to put its regulatory difficulties in the rearview, and Citigroup is pulling back abroad as it restructures. <\/p>\nThe number to watch<\/h2>\n
Delta sales, fuel costs:<\/strong> Delta Air Lines
\n DAL,
\n +1.54%<\/bg-quote>
\n reports on Thursday. The air carrier will report as the revenge-travel boom shows signs of giving way to lower-key vacations, and as higher fuel prices clash with falling fares, the latter being a function of more available seats and flights. Delta has been able to shore up sales and profit with its premium seating classes \u2014 the sales split between its premium seats and main-cabin ones is close to 50\/50 \u2014 and its lucrative partnership with American Express Co.
\n AXP,
\n +1.52%<\/bg-quote>.<\/span>
\n But after the airline\u2019s plans to limit cardholder access to Sky Club lounges drew backlash, Chief Executive Ed Bastian said the company would make \u201cmodifications.\u201c<\/p>\n<\/p><\/div>\nRead the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Lots of big things have happened over first, second and third quarters of this year: persistent inflation, higher interest rates from the Federal Reserve, the return of student-loan payments, fluctuating recession anxieties, relentless prophesizing over AI and a tech-stock explosion that helped carry the S&P 500 Index SPX higher. But as the third-quarter corporate earnings […]<\/p>\n","protected":false},"author":1,"featured_media":70449,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-70448","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\n
Q3 earnings are here: S&P 500 heads toward year of profit declines as JPMorgan, and Delta report this week | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Lots of big things have happened over first, second and third quarters of this year: persistent inflation, higher interest rates from the Federal Reserve,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=70448\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Q3 earnings are here: S&P 500 heads toward year of profit declines as JPMorgan, and Delta report this week | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Lots of big things have happened over first, second and third quarters of this year: persistent inflation, higher interest rates from the Federal Reserve,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=70448\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-09T08:49:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-09T08:49:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/10\/1696841362_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=70448#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=70448\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Q3 earnings are here: S&P 500 heads toward year of profit declines as JPMorgan, and Delta report this week\",\"datePublished\":\"2023-10-09T08:49:21+00:00\",\"dateModified\":\"2023-10-09T08:49:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=70448\"},\"wordCount\":977,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=70448#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=70448\",\"url\":\"https:\/\/ifintechworld.com\/?p=70448\",\"name\":\"Q3 earnings are here: S&P 500 heads toward year of profit declines as JPMorgan, and Delta report this week | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-10-09T08:49:21+00:00\",\"dateModified\":\"2023-10-09T08:49:24+00:00\",\"description\":\"Lots of big things have happened over first, second and third quarters of this year: persistent inflation, higher interest rates from the Federal Reserve,\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=70448#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=70448\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=70448#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Q3 earnings are here: S&P 500 heads toward year of profit declines as JPMorgan, and Delta report this week\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Q3 earnings are here: S&P 500 heads toward year of profit declines as JPMorgan, and Delta report this week | iFintechWorld","description":"Lots of big things have happened over first, second and third quarters of this year: persistent inflation, higher interest rates from the Federal Reserve,","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=70448","og_locale":"en_US","og_type":"article","og_title":"Q3 earnings are here: S&P 500 heads toward year of profit declines as JPMorgan, and Delta report this week | iFintechWorld","og_description":"Lots of big things have happened over first, second and third quarters of this year: persistent inflation, higher interest rates from the Federal Reserve,","og_url":"https:\/\/ifintechworld.com\/?p=70448","og_site_name":"iFintechWorld","article_published_time":"2023-10-09T08:49:21+00:00","article_modified_time":"2023-10-09T08:49:24+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/10\/1696841362_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=70448#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=70448"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Q3 earnings are here: S&P 500 heads toward year of profit declines as JPMorgan, and Delta report this week","datePublished":"2023-10-09T08:49:21+00:00","dateModified":"2023-10-09T08:49:24+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=70448"},"wordCount":977,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=70448#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=70448","url":"https:\/\/ifintechworld.com\/?p=70448","name":"Q3 earnings are here: S&P 500 heads toward year of profit declines as JPMorgan, and Delta report this week | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-10-09T08:49:21+00:00","dateModified":"2023-10-09T08:49:24+00:00","description":"Lots of big things have happened over first, second and third quarters of this year: persistent inflation, higher interest rates from the Federal Reserve,","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=70448#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=70448"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=70448#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Q3 earnings are here: S&P 500 heads toward year of profit declines as JPMorgan, and Delta report this week"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/70448","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=70448"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/70448\/revisions"}],"predecessor-version":[{"id":70450,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/70448\/revisions\/70450"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/70449"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=70448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=70448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=70448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}