Corporate profits, a tried-and-true force in pushing the S&P 500 higher, have lost their power this time around.
Between the JPMorgan Chase & Co. report that kicked off the earnings season and the Walmart Inc. one Thursday that marks the unofficial end, the S&P 500 has dropped 2.2%. The decline is the first in five reporting cycles and stands in contrast to the trend of the past two decades, during which the gauge gained two-thirds of the time when its members disclosed results.
But their ability to push the stock market higher was sapped by the strong rally that had already happened this year, as well as resurgent concerns that the persistent strength of the economy will lead the Federal Reserve to hold interest rates higher for longer than markets expected. The quarterly earnings season is rightfully viewed as an important barometer on strength of Corporate America, and during typical times it’s a good one for share prices. This century, stocks rallied during the announcement season more than 66% of the time.
The concerns that this month’s stock drop could continue is evident in the options market, where call buying to open a position — a gauge of bullish wagers — in August dropped to the lowest this year relative to puts, Options Clearing Corp. data analyzed by Citigroup Inc. show. On top of that, JPMorgan’s latest client survey showed that 69% of respondents see the markets being too optimistic about the prospect that the Fed will steer the economy to a soft landing.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hernandez's sacrifice fly breaks tie as Mariners edge closer to Jays after beating RoyalsTeoscar Hernandez hit a tiebreaking sacrifice fly in the eighth inning and the Seattle Mariners beat the Kansas City Royals 6-5 on Wednesday night.
Read more »
Quebecers no longer seeing doctor-assisted deaths as exceptional, says oversight bodyMONTREAL — As the frequency of medical aid in dying continues to rise in Quebec, the head of the independent body that monitors the practice in the province says he worries doctor-assisted deaths are no longer being seen as a last resort.
Read more »
Quebecers no longer seeing doctor-assisted deaths as exceptional, says oversight bodyThe head of the independent body that monitors the practice says he worries doctor\u002Dassisted deaths are no longer being seen as last resort.
Read more »
Quebecers no longer seeing doctor-assisted deaths as exceptional, says oversight bodyMONTREAL — As the frequency of medical aid in dying continues to rise in Quebec, the head of the independent body that monitors the practice in the province says he worries doctor-assisted deaths are no longer being seen as a last resort.
Read more »
Larissa Pacheco Will Be ‘Surprised’ if PFL Playoff Fight Lasts Longer than One MinuteAs she chases Professional Fighters League history, Larissa Pacheco is brimming with confidence.
Read more »
Climate change spurs innovation at ski resorts adapting to a warmer worldReal estate investors: ‘No snow, no go’
Read more »