A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here.
New York (CNN Business)Corporate profits soared in the first half of this year, largely because of favorable comparisons to last year’s weak earnings. The Covid shutdown of the economy hit major companies hard in the first half of 2020.
But as companies get set to report their third-quarter results in the next few weeks, some Wall Street analysts are concerned the rate of earnings increases will start to slow. This may be the peak for the foreseeable future.
That could pose problems for investors. After all, stocks have surged this year — largely because Wall Street expected the profit party would keep going.
Pepsi (PEP) kicked off earnings season on Tuesday with stronger than expected results. And the giants of Wall Street will dominate the earnings calendar this week.
JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), Goldman Sachs (GS) and several other top banks are all due to release figures for the third quarter. Delta (DAL), Domino’s (DPZ) and Walgreens (WBA) are also on tap this week.
Those results should be solid. According to estimates tracked by FactSet Research Systems, profits for companies in the S&P 500 are..Read More
