20 minutes ago
Congress remains divided over budget negotiations
Congress remains in a stalemate over the federal budget as hard-line Republicans refuse to make further spending cuts.
The current spending laws expire on September 30th. That means if Congress doesn’t reach an agreement before 12:01 a.m. on October 1, the government will shut down. Republicans in the House of Representatives sent the chamber into recess on Thursday, delaying further development of negotiations.
— Yun Li, Rebecca Picciotto
20 minutes ago
According to FactSet, S&P 500 earnings improved in the third quarter
Profits at S&P 500 companies are expected to fall 0.2%, falling for a fourth straight quarter, but the outlook is improving, according to John Butters, senior earnings analyst at FactSet.
The 0.2% decline for the overall index is better than the 0.4% decline forecast on June 30 and would prove to be the smallest decline during the four-quarter decline. According to FactSet, a 0.2% decline in third-quarter earnings per share estimates since the end of the second quarter is far smaller than the five-year average decline of -3.6% and the 10-year average decline of -3.4%.
Eight of the 11 major sectors in the S&P 500 are estimated to post higher year-over-year profits in the third quarter, led by communications services and consumer discretionary companies. Three are forecast to see a decline in profits, particularly in the energy and materials sectors.
Earnings are expected to continue to improve, with S&P 500 earnings rising 8.2% year over year in the fourth quarter and 12.2% for all of 2024, up from just 1.1% in the calendar year 2023, Butters said Friday.
– Scott Schnipper