Earnings generally have beaten analysts’ expectations, despite the slowing global economy
U.S. stocks inched higher Monday to start a busy week of corporate earnings, while investors continued to track developments in the U.K.’s divorce from the European Union.
This is the busiest week of the quarter for corporate earnings, and results so far have beaten analysts’ expectations. Those expectations were low, however, with analysts as of Sept. 30 estimating a 4% decline in third-quarter earnings for S&P 500 companies, according to FactSet.
Shares of oil-field services company Halliburton added 6.4% Monday after reporting cost cuts and a better-than-expected outlook. Even with the rally, the stock is down 26% year-to-date.
“So far we’ve seen the out-of-favor stocks react positively to earnings,” said Olivier Sarfati, head of equities at GenTrust. “But we haven’t seen the in-favor stocks that everybody else owns because they haven’t reported yet.”