Investors are bracing for third quarter earnings season which gets underway later this morning before the opening bell with the release of corporate earnings results from aluminum maker Alcoa.
According to Factset, the estimated earnings for the third quarter in 2016 is expected to decline – 2.1 percent for the S&P 500.
Eighty of the 500 companies in the S&P 500 have issued negative EPS guidance and 34 companies have issued positive EPS guidance.
As in other previous quarters, the strong U.S. dollar was cited as a factor for the decline by a majority of sampled earnings transcripts in the index that either had a negative impact on earnings or revenues for Q3, or is expected to have a negative impact on future earnings and revenues in future quarters.
Investors will also pay close attention this week to the release of Fed minutes from the Fed’s September meeting along with U.S. retail sales for September and an inflation reading with PPI both due on Friday.
Economists from briefing.com have a consensus estimate that retail sales rose 0.6 percent in September after declining – 0.3 percent in August.
Full Economic Calendar
Wednesday- Fed Minutes from Sept. FOMC meeting, Crude Inventories, MBA Mortgage Index
Thursday- Continuing and Initial Claims, Export/Import Prices (Sept.), Natural Gas Inventories, Treasury Budget (Sept).
Friday- PPI (Sept.), Retail Sales (Sept.), Business Inventories (Aug), Michigan Sentiment (Oct.)