Congress remains divided on budget negotiations
Congress is still in a stalemate on the federal budget as GOP hard-liners refuse to budge on further spending cuts.
Current spending laws are due to expire on Sept. 30. That means if Congress does not reach an agreement before 12:01 a.m. on Oct. 1, the government will shut down. House Republicans on Thursday sent the chamber into recess, delaying further developments in the negotiations.
— Yun Li, Rebecca Picciotto
Third quarter earnings for S&P 500 are improving, FactSet says
Earnings for the S&P 500 companies are forecast to edge lower by 0.2% and decline for the fourth quarter in a row, but the outlook is improving, according to FactSet senior earnings analyst John Butters.
The 0.2% decline for ther entire index is better than the 0.4% decrease that was forecast on June 30, and would prove the smallest during the four-quarter-long skid. Meanwhile, a 0.2% decline in individual stock third quarter per-share earnings estimates since the end of the second quarter is far less than the five-year average decline of -3.6% and 10-year average of -3.4%, FactSet said.
Eight of the 11 main sectors in the S&P 500 are estimated to post higher year-over-year third quarter earnings, led by communication services and consumer discretionary companies. Three are forecast to see earnings declines, led by energy and materials.
Earnings are expected to continue to improve, with fourth quarter S&P 500 profits expanding by 8.2% from last year, and 12.2% in all of 2024, up from just 1.1% in calendar 2023, Butters said Friday.
— Scott Schnipper
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